These high yields attract aggressive investors

Article Excerpt

DOREL INDUSTRIES INC. $17 (Toronto symbol DII.B; High-Growth Payer Portfolio; Consumer sector; Shares outstanding: 32.4 million; Market cap: $550.8 million; Dividend yield: 9.4%; Dividend Sustainability Rating: Above Average; makes ready-to-assemble home and office furniture; juvenile products such as car seats, strollers, high chairs, beds and cribs; and bicycles and other sporting goods. The company last raised its dividend in 2012 when it doubled that quarterly payment to $0.30 U.S. a share. Its annual rate of $1.20 U.S. yields a high 9.4%. Dorel recently sold its SUGOI and Sombrio brands to Louis Garneau Sports for an undisclosed sum. Both brands focus on cycling apparel and continue to lose money. The sale will let Dorel Sports focus on its core business of bikes, their parts and accessories, and electric ride-on toys. In October 2018, Dorel’s Home business paid $3.3 million for Alphason, a U.K.-based manufacturer of office furniture. Well known in the U.K. furniture market, the acquisition provides Dorel with a strong local partner to grow its…

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