Dairy producer Saputo (SAP) has increased it's quarterly dividend by a meagre 3.6% to 14.5 cents per share after reporting a flattish quarter on the earnings front.
Saputo shares are up 5% today and the stock now yields 2.3%. The pay out ratio on the actual quarter's EPS was 35%.
The company was hit by lower cheese prices in the US placing downward pressure on earnings and revenues, which were still up by 6.2%. This was the first quarter for inclusion of the acquired Neilson Dairy business which was the reason for the revenue increase.
This company is always strongly affected by cheese prices as well as US/CAD exchange. They seem to be focused on growth and I think the investment provides a nice mix between growth and stability; having a staple-type product.
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