Topic: How To Invest

Dividend Advisor Hotline – Friday, October 11, 2019

Article Excerpt

DOREL INDUSTRIES INC., $4.83, Toronto symbol DII.B, makes ready-to-assemble home and office furniture; juvenile products such as car seats, strollers, highchairs, toddler beds and cribs; and bicycles and other sporting goods. Earlier this year, Dorel cut its annual dividend rate by 50%, to $0.60 U.S. from $1.20. The company has now suspended its dividend altogether. Dorel cites the ongoing impact of increased U.S. tariffs on Chinese goods, which pushes up the cost of the products it sells. The company raised prices midway through its third quarter (ended September 30, 2019), but has had several negative consequences. Not all of the other competing suppliers and retailers, raised prices at the same time or rate. Retailers have also changed their buying routines. Dorel’s higher prices hurt sales. Another factor affecting the third quarter is that some of the company’s large U.S. customers have delayed 2019 holiday season deliveries to the beginning of the fourth quarter. In addition, the recent rise in value of the U.S….

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