CAE could restart its dividend

Article Excerpt

CAE INC. $39 is still a buy for patient investors. The company (Toronto symbol CAE; Conservative-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 266.2 million; Market cap: $10.4 billion; Dividend suspended in March 2020; Dividend Sustainability Rating: Average; www.cae.com) suspended its $0.11-a-share quarterly dividend in 2020 as COVID-19 hurt demand for its flight simulators. CAE is now paying $1.1 billion U.S. for the military training operations of U.S.-based L3Harris Technologies Inc. (New York symbol LHX). This business makes simulators for military aircraft, unmanned drones and submarines. It also provides flight training services to the U.S. Air Force. The purchase will help cut the company’s exposure to the commercial airline business, which continues to struggle with COVID-19 travel restrictions. However, air travel volumes are now rebound from their 2020 lows. That would let the company resume regular dividend payments. CAE is a buy. buy. …

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