Updating Finning International Inc.

Article Excerpt

FINNING INTERNATIONAL INC. $32 (Toronto symbol FTT; Cyclical-Growth Payer Portfolio, Manufacturing & Industry sector; Shares outstanding: 168.4 million; Market cap: $5.4 billion; Dividend yield: 2.5%; Dividend Sustainability Rating: Above Average; www.finning.com) sells and services Caterpillar-brand heavy equipment in Canada, South America and the U.K. Its main customers are in the oil, mining, forest-products and construction industries. Starting with the June 2018 payment, Finning will increase its quarterly dividend by 5.3%. Investors will then receive $0.20 a share instead of $0.19. The new annual rate of $0.80 yields 2.5%. In the three months ended March 31, 2018, Finning’s revenue rose 19.2%, to $1.7 billion from $1.4 billion a year earlier. Higher prices for crude oil and other commodities continue to lift demand for new and used equipment. If you exclude costs related to a restructuring plan, including job cuts and closing some facilities, the company earned $65.9 million, or $0.39 a share, in the quarter. That’s an increase of 40.2% from $47.0 million, or $0.28, a year…