CAE’s dividend should return

Article Excerpt

CAE INC. $20 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: $5.3 billion; Dividend suspended in March 2020; Dividend Sustainability Rating: Average; www.cae.com) is a leading maker of flight simulators for commercial and military aircraft. It also operates pilot-training schools in over 30 countries and makes mannequins and other medical-simulators for training health professionals. COVID-19 has hurt demand for the company’s flight simulators. As a result, it suspended its $0.11-a-share quarterly dividend. However, demand for CAE’s training services should start to recover as pilots must complete a certain amount of training each year to maintain their licenses. The company’s military and healthcare operations also add stability, particularly as the Canadian government just ordered 10,000 of its new medical ventilators. CAE is still a buy. buy…

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