Topic: How To Invest

Q: Pat, your thoughts, please, on Rogers Sugar (RSI-T), as a good, albeit boring, dividend yield stock. Thanks.

Article Excerpt

A: Rogers Sugar Inc., $6.27, symbol RSI on Toronto (Shares outstanding: 105.7 million; Market cap: $665.1 million; www.lantic.ca), owns 100% of Lantic Inc., which makes it the leading supplier of refined sugar in Canada. Lantic operates cane sugar refineries in Quebec (including Montreal) and Vancouver. It also manages the only Canadian sugar-beet processing facility, in Taber, Alberta. Lantic’s sugar products are marketed under the “Lantic” trademark in central and eastern Canada, and the “Rogers” trademark in Western Canada. They include granulated, icing, cube, yellow and brown sugars, liquid sugars, and specialty syrups. In the three months ended July 1, 2017, revenue rose 20.0%, to $166.4 million from $138.6 million a year earlier. Excluding one-time items, earnings rose 24.4%, to $9.0 million, or $0.10 a share, from $7.3 million, or $0.08 a share. The gains were largely due to favourable currency movements and improved exports. That offset otherwise sluggish domestic demand and growing competition in the Canadian market. It has hurt Rogers Sugar in…