New contracts will lift its revenue

Article Excerpt

TRANSCONTINENTAL INC. $15 is still a buy. Canada’s largest commercial printing company (Toronto symbol TCL.A; Cyclical-Growth Portfolio, Consumer sector; Shares outstanding: 86.6 million; Market cap: $1.3 billion; Dividend yield: 6.0%; Dividend Sustainability Rating: Above Average; www.tctranscontinental.com) last raised your dividend with the April 2020 payment. Investors now receive $0.225 a share, up 2.3% from $0.22. The current annual rate of $0.90 yields a high 6.0%. Transcontinental’s revenue will probably improve about 3% in the fiscal year ending October 31, 2023, thanks to new packaging contracts as well as rising demand for book printing and in-store marketing displays from re-opened stores. For example, Torstar, the publisher of The Toronto Star and smaller newspapers, is shifting more of its printing needs to Transcontinental. This new contract also extends the company’s current deal with Torstar to the end of 2027. Transcontinental is a buy. buy. …