A good pick for post-COVID gains

Article Excerpt

TRANSCONTINENTAL INC. $24 is a buy. Canada’s largest commercial printing company (Toronto symbol TCL.A; Cyclical-Growth Portfolio, Consumer sector; Shares outstanding: 77.1 million; Market cap: $1.9 billion; Dividend yield: 3.8%; Dividend Sustainability Rating: Above Average; www.tctranscontinental.com) last raised your dividend with the April 2020 payment. Investors now receive $0.225 a share, up 2.3% from $0.22. The new annual rate of $0.90 yields a high 3.8%. Transcontinental recently paid $50.0 million for BGI Retail Inc. Based in Paris, Ontario, that firm designs and builds in-store promotional displays. Demand for BGI’s services will likely be strong as retailers look to expand sales when they re-open following COVID-19 shutdowns. The new operations enhance the company’s in-store marketing operations. That business now generates annual revenue of $200 million, or 8% of its total yearly revenue of $2.49 billion. Transcontinental is a buy. buy…