Dividend hike a sign of confidence

Article Excerpt

LINAMAR CORP. $64 remains a buy for long-term gains. The Company (Toronto symbol LNR; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 59.8 million; Market cap: $3.8 billion; Price-to-sales ratio: 0.4; Dividend yield: 1.8%; TSINetwork Rating: Average; www.linamar.com) makes a variety of automotive parts It also makes self-propelled, scissor-type work platforms under the Skyjack brand, and agricultural harvesting equipment. The stock has held up well despite new U.S. tariffs on auto parts, as its products comply with the U.S.-Mexico-Canada trade agreement. As well, Linamar’s contracts with its customers let it adjust terms based on changing prices for steel and aluminum; that offsets the impact of higher tariffs on those metals. The company will probably earn $9.91 a share in 2025, and the stock trades at just 6.5 times that estimate. It’s also raising your quarterly dividend by 16.0%; the new annual rate of $1.16 yields 1.8%. Linamar remains a buy for long-term gains. gains. …