Topic: How To Invest

Dividend Advisor Hotline – Friday, October 19, 2018

Article Excerpt

SNC-LAVALIN GROUP INC., $46.91, Toronto symbol SNC, is a leading Canadian engineering and construction company that specializes in large-scale infrastructure projects such as roads, bridges, transit systems and water-treatment plants. SNC last raised its quarterly dividend with the March 2018 payment. Investors now receive $0.287 a share, up 5.1% from $0.273. The new annual rate of $1.148 yields 2.4%. The stock is down 23.8% from its recent peak of $61.54 on June 14, 2018. That drop is mainly because the Public Prosecution Service of Canada has refused to negotiate a settlement over charges SNC used bribes to win construction contracts in Libya between 2001 and 2011. Since then, the company has replaced its senior executives and brought in a new program to enforce ethical practices. However, without a negotiated settlement, a criminal trial could begin later this month. SNC’s dividend has grown an average of 4.5% annually over the last 5 years. Its TSI Dividend Sustainability Rating is Above Average. OUR RECOMMENDATION: SNC-Lavalin is still…

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