Topic: How To Invest

Dividend Advisor Hotline – Friday, June 19, 2020

Article Excerpt

TRANSCONTINENTAL INC., $14.67, Toronto symbol TCL.A, is a buy for aggressive investors. The company is Canada’s leading commercial printer. It also makes plastic packaging for consumer and industrial products. With the April 2020 payment, Transcontinental raised your quarterly dividend by 2.3%. Investors now receive $0.225 a share, up from $0.22. The new annual rate of $0.90 yields a high 6.1%. In its fiscal 2020 second quarter, ended April 26, 2020, the company’s overall revenue fell 18.5%, to $625.1 million from $767.4 million a year earlier. Even so, that beat the consensus forecast of $607.9 million. The lower revenues are mainly because the company sold some of its smaller operations, including a paper packaging business and parts of its media division. The COVID-19 pandemic also hurt demand for printed advertising flyers. In response, Transcontinental had to temporarily close some plants and lay off 1,600 employees. However, it has since recalled 600 of those workers. If you exclude unusual items, earnings per share fell 16.7%, to $0.50…