Income Investors: Sweeten Your Portfolio With This High-Yielding Stock

Would you like a stock with a dividend yield over 5%? Then consider Rogers Sugar Inc. (TSX:RSI). We will take a look at the stock’s fourth-quarter earnings results and its dividend offering.

| More on:

Here’s a nice small-cap stock to consider for income investors. It has a sweet yield and just released quarterly results. Which company is it? It’s Rogers Sugar Inc. (TSX:RSI). Rogers Sugar owns Lantic Inc., which processes and distributes sugar. (No surprise there.) We’ve talked about this stock a few times here at the Motley Fool. You can see our most recent musings on Rogers Sugar here.

Quarterly results

Rogers Sugar, which has a market cap of $659 million, released fourth-quarter results on November 22. The company reported decreased sugar deliveries for the quarter of 3,800 metric tonnes. (Yay for Canadian diets?) Reported earnings were $0.08 per share, missing analyst expectations of $0.13 per share. For the other three quarters in fiscal 2017, results were in line with expectations. The company’s net profit margin for the quarter was in negative territory at -0.27%. The company blames the quarterly woes on increased expenses.

Some encouraging news

Rogers Sugar had some good news to report for the quarter. As if the company didn’t have enough sweets in its wheelhouse, Rogers Sugar purchased a maple syrup bottler, L.B. Maple Treat Corp., for $160 million. L.B. is one of the largest maple distributors in the world. Then on November 17, Rogers Sugar announced the acquisition of another maple company, Decacer. This is a much smaller company, with one bottling plant to its name. Clearly, Rogers Sugar decided it needed to branch out its sweets offerings. This could be a boon to the company, as consumers turn away from processed sugars and look for more natural alternatives. Maple syrup and honey tend to fit the “natural” bill.

Dividend offering

The company stands out with its dividend offering. The stock pays a quarterly dividend of $0.09 per share for an annual payout of $0.36. This payout has been steady for the past five years. While it would be nice to see an increase, stability is also good. The payout gives this stock a dividend yield of 5.51%. Sweet! (Couldn’t help myself.) If you are looking for income, the yield makes this stock deserving of your attention.

Bottom line

Even though the fourth quarter didn’t look great, this stock has been fairly solid over the years, and the company is trying to improve its fortunes with its foray into maple syrup. The dividend yield is also nice for those of you interested in income.

And if you’d like to hear more about high-yielding dividend stocks, take a look at these recent stock picks from Fool contributor Andrew Walker.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Susan Portelance has no position in any stocks mentioned.

More on Dividend Stocks

Dividend Stocks

Enbridge Stock: This Dividend Aristocrat Looks Like a Steal in 2023

Here are some key factors that make ENB a great Canadian dividend stock to buy on the dip in 2023.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

U.S. Debt Ceiling: Is It Safe to Invest Right Now?

The U.S. debt ceiling is in the headlines again. You can play it safe by investing long term in wonderful…

Read more »

analyze data
Dividend Stocks

How to Invest $20,000 to Make Ultra-Safe Passive Income

Got $20,000 to invest for passive income? These three stocks are perfect for earning ultra-safe passive income for the long…

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

For Passive Income: How to Turn $25,000 Into $158 Per Month

High-yield, monthly dividend stocks trading on the TSX such as Slate Grocery can help you earn a predictable stream of…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Canadian Dividend Stocks to Buy for Consistent Passive Income

These top dividend stocks have raised their distributions annually for more than two decades.

Read more »

Piggy bank next to a financial report
Dividend Stocks

Self-Directed RRSP: 2 Top Dividend Stocks to Buy in June 2023

These top TSX dividend stocks look cheap to buy today and offer attractive dividend yields.

Read more »

Dividend Stocks

Looking for Reliable Retirement Income? Consider These Dividend-paying Stocks

National Bank of Canada and another reliable income stock that could be a perfect fit for your retirement fund this…

Read more »

grow money, wealth build
Dividend Stocks

Are You Looking for High-Yield Investments? 3 TSX Stocks That Offer Excellent Payouts

These dividend stocks all offer solid payouts, as well as yields in the five to six percent range. So get…

Read more »