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.

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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.

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