Is Rogers Communications a Buy?
Thu, Feb 18, 11:12 AM ET, by Scott V. Nystrom
Toronto, Canada-based Rogers Communications (RCI) declared a quarterly dividend of thirty two cents per share yesterday, an increase of 17 percent over the prior quarterly dividend of 29 cents per share. Rogers has an annualized yield of 3.7 percent. The dividend payout ratio for Rogers Communications is at the upper edge of a recommended limit of 62.7 percent of earnings for the quarter. The company was upgraded from neutral to buy yesterday by analysts at Bank of America/ Merrill Lynch. Share prices fell 4.6 percent yesterday to close at $31.48. Rogers is currently trading 1.1 percent higher at $31.82 mid-morning today. Rogers Communications operates a communications and media company with three segments in wireless, cable, and media. The company was founded in 1920 and is headquartered in Toronto, Canada. For the quarter ended December 31, 2009, the company reported earnings of $310 million or 51 cents per share compared to a net loss of $138 million minus 22 cents per share for same quarter one year ago and $485 million or 79 cents per share for the third quarter of 2009. The company generated double digit EBITDA growth. The wireless data segment grew 45 percent. Margin expansion was driven across all three major business segments. Income investors should review Rogers' trend of returning capital, growing free cash flow and providing shareholder value over the past year. Several other companies were raising dividends in the past two weeks and may be of interest to investors. Sherwin Williams (SHW) announced its quarterly dividend of 36 cents per share, an increase of about 1 percent over its prior quarterly dividend in November of 35.5 cents. The company has an annualized dividend yield of 2.2 percent. 3M Company (MMM) announced its quarterly dividend of 52.5 cents per share, an increase of about 3 percent over the previous quarter’s dividend payment of 51 cents. The annualized dividend yield is 2.6 percent. Randgold Resources (GOLD) announced a dividend of 17 cents per share, an increase of about 31 percent over its prior quarterly dividend of 13 cents. Higher gold prices during the last quarter led to a huge jump in profits. As a growth company in a capital intensive industry, Randgold's annualized dividend yield is a relatively low 0.23 percent. United Technologies Corporation (UTX) announced its quarterly dividend of 42.5 cents per share, an increase of about 10 percent over its prior dividend in November of 38.5 cents. The company has an annualized dividend yield of 2.5 percent. Soft drink distributor Coca Cola Enterprises (CCE) increase its quarterly dividend twelve percent to 9 cents a share, an annualized yield of 1.8 percent. Avon Products Incorporated (AVP) announced its quarterly dividend of 22 cents per share on February 9, an increase of about 5 percent over the previous quarterly dividend of 21 cents. The annualized yield is 2.9 percent. Compass Minerals International Incorporated (CMP) announced its quarterly dividend of 39 cents per share, an increase of about 10 percent over its prior quarterly dividend of 35.5 cents. The company has an annualized dividend yield of 2.1 percent. ______ Disclosure: No positions
SDI Glossary: "price" Definition
SDI Glossary: "EBITDA" Definition
SDI Glossary: "Income investor" Definition
SDI Glossary: "Margin" Definition
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