Both Russel and Wajax offer very high yields

Article Excerpt

Those industrials remain profitable despite COVID-19-induced slowdowns in their markets. Meanwhile, both yield over 8%. That adds an extra layer to their appeal and helps support their share prices. Each is a buy. RUSSEL METALS $18.00 (New York symbol XEC; TSINetwork Rating: Extra Risk) (www.russelmetals.com; Shares outstanding: 62.2 million; Market cap: $1.1 billion; Dividend yield: 8.4%) is one of North America’s largest metal distributors: the company (symbol RUS on Toronto) serves 33,000 clients at 48 locations in Canada and 16 others in the U.S. Governments have designated most of Russel’s operations as “essential,” so they continued to operate during the COVID-19 lockdowns. Even so, the company’s revenue in the three months ended June 30, 2020, fell 37.2%, to $588.1 million from $936.7 million a year earlier. That reflects the slowing economy and lower oil prices (Russel supplies pipes to oil and gas drillers). Earnings were $4.6 million, or $0.07 a share. That’s down 69.4% from $30.8 million, or $0.50, a year earlier. The company’s strong balance sheet…

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