If history is any indication, stock indexes often bounce back after panic selling in a period of crisis. The S&P Index has threatened to fall below the 15,000 mark as of the close on August 10 in the wake of the tensions on the Korean peninsula. Analysts have expressed concerns that commodities could suffer if a conflict were to erupt in East Asia — a source of high demand for iron ore and crude oil. Though there is no promise these conditions will persist, it is prudent to exercise caution during a tenuous period.
Investors are fleeing riskier growth stocks and flocking to precious metals and income-generating equities. Let’s delve into three commodity stocks that offer high dividends.
Just Energy Group Inc.
The share price of Just Energy Group Inc. (TSX:JE)(NYSE:JE) fell 1.35% to close at $6.59 on August 10. The company also reported earnings of $0.14 per share in the first fiscal quarter of 2018. It posted sales of $630 million, representing a decline of 9.6% from the $697 million reported the previous year. Gross profits fell 3.1% to $157.6 million as the company experienced a marked decline in its customer base.
The share price has fallen 10% in 2017 thus far and 17% year over year on the back of weak commodity prices. The stock boasts a 7% dividend yield at $0.12 per share. Analysts are projecting stabilized oil that could reach above the $50 mark in the latter half of 2017, which should give the stock a boost in the short term. For now, it offers a tasty dividend during a tumultuous period.
Russel Metals Inc.
Russel Metals Inc. (TSX: RUS) is a large North American supplier of metals products operating in Canada and the United States. On August 2, the company announced its second-quarter results and reported net income of $33 million, or $0.52 per share. Revenue in the metals service increased 14% to $416 million compared to the second quarter of 2016. Energy products saw 68% growth to $296 million in comparison to $176 million in the same period the previous year.
The stock has increased 2% in 2017 and 12% year over year. In the earnings call, the board of directors announced a quarterly dividend of $0.38 per share, representing a dividend yield of 5.81%.
Superior Plus Corp.
Superior Plus Corp. (TSX: SPB) stock has fallen 11% in 2017. The company released its second-quarter results on August 9. Gross profit fell $6.4 million to $86.9 million from Q2 2016 due to weakness in the Canadian propane distribution business. Restructuring managed to reduce operating and administrative costs by 3% to $74.1 million. Adjusted EBITDA increased 45% to $12.6 million from the second quarter of 2016.
The stock boasts a 6% dividend yield at $0.06 per share. After strong earnings, the share price has suffered as the shadow of lower demand looms. The stock can be added for its attractive dividend, but it may be stricken by volatility in the short to medium term.
