Dividend increase: CAE

Article Excerpt

CAE INC. $33 (Toronto symbol CAE; Conservative Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 267.7 million; Market cap: $8.8 billion; Dividend yield: 1.3%; Dividend Sustainability Rating: Above 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. The company will raise its quarterly dividend by 10.0% with the September 2019 payment. Investors will then receive $0.11 a share instead of $0.10. CAE’s new annual rate of $0.44 yields 1.3%. The company has now increased its dividend each year since 2008. CAE will likely earn $1.35 a share for the fiscal year ending March 31, 2020. The stock trades at a reasonable 24.4 times that forecast. CAE is a buy. buy. …