Topic: How To Invest

Stock Pickers Digest Hotline – Friday, October 4, 2019

Article Excerpt

DOREL INDUSTRIES INC., $5.11, symbol DII.B on Toronto, makes ready-to-assemble home and office furniture; juvenile products such as car seats, strollers, high chairs, 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. This week, the company suspended its dividend altogether—and the shares took a big drop. 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 competitors, nor 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 Dorel’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…

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