If you are on the lookout for a new dividend stock, here’s one that pays a quality dividend in U.S. dollars, to boot, and it just had a stellar quarter. Which stock are we talking about? It’s Intertape Polymer Group (TSX:ITP).
Intertape do works in specialty packaging. Specifically, it develops and manufactures specialized tapes and packaging films. Its products include pressure-sensitive and water-activated tapes.
We last talked about this stock in September, when Fool contributor Kay Ng discussed a dip in the stock’s price. Let’s see what the stock is up to now.
The company reported third-quarter results on November 13. Revenue increased 17.9% to $243.4 million from last year’s Q3 results. This was largely due to acquisitions and price increases. Net earnings also made a large jump of $13 million to $19.2 million this quarter. Earnings per share came in at $0.40, blowing past analysts’ estimates of $0.29 per share. This was a rebound after two straight quarters of missing expectations. The company did not announce any new big moves during this last quarter.
What else is there to like?
The company has some solid numbers. Return on equity sits at 22.56%, higher than the 15-20% analysts normally like to see. The net profit margin for the quarter is 7.92%, putting the stock around the middle of the pack when compared to its peers. Its P/E ratio is 15.69, below many of its peers. The stock price has been up and down and is currently on an upswing.
Intertape also offers a nice dividend paid in U.S. cash. The stock currently pays a quarterly dividend of U.S.$0.14 per share for an annual payout of US$0.56 per share. This gives the stock a yield of 3.36%. The company has a history of steadily increasing its dividend payout over the last five years, which I always like to see.
The company pays a quality dividend and had a good quarter. If you are looking for dividend stocks, this one is worth your consideration.
For discussion on other possible dividend contenders, here’s another recent article to look at.
The Motley Fool Canada’s top dividend expert and lead adviser of Dividend Investor Canada, Bryan White, recently released a premium “buy report” on a dividend giant he thinks everyone should own. Not only that – but he’s created a must-have, exclusive report that outlines all the alarming traits of dividend stocks that are about to blow up – and how you can avoid them.
For this limited time only, we’re not only taking 57% off Dividend Investor Canada, but we’re offering you special access to two brand-new reports, free of charge upon signing up. They will outline everything you need to know so you steer clear of dividend burn-outs AND take advantage of the dividend giants in the Canadian market.
While this offer is still available, you can find out how to get a copy of these brand-new reports by simply clicking here.
Fool contributor Susan Portelance has no position in any stocks mentioned.