Dividend safe despite COVID closures

Article Excerpt

SAPUTO INC. $32 is still a hold. The company (Toronto symbol SAP; High-Growth Payer Portfolio, Consumer sector; Shares o/s: 408.0 million; Market cap: $13.1 billion; Divd. yield: 2.1%; Dividend Sustainability Rating: Above Average; www.saputo.com) is Canada’s largest producer of dairy products. It also operates dairies in the U.S., Australia and Argentina. Saputo last raised your quarterly dividend in September 2019, to $0.17 a share, up 3.0% from $0.165. The new annual rate of $0.68 yields 2.1%. The COVID-19 pandemic continues to spur consumer demand for dairy products as more people eat at home. However, sales to restaurants and industrial users will likely remain weak for the next few months. That key segment accounts for 51% of its total sales. Saputo is hold. hold…

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