We saw a number of well-known Canadian companies become public entities this year. One of these stocks was Jamieson Wellness Inc. (TSX: JWEL). The company is well known for its green and white vitamin bottles found in pharmacies and grocery stores, and it claims to be Canada’s number one consumer health brand. How has the stock done in its first year of trading? Let’s take a look.
The IPO
After almost a century of functioning as a private company, Jamieson launched publicly in the heart of summer on July 7. The company set its initial stock price at $15.75 per share. The stock closed up at $17.30 per share by the end of its first day.
How the stock looks now
How did the stock do after the IPO? It had a slight dip over the first two weeks into the $16 range, but it has mostly increased since then. It has done particularly well since its last earnings announcement. The stock has hit a trading high of $22.67 and has traded over the $20 mark since early November. This price strength is likely due to positive earnings results released on November 9. Revenue increased over 40% from the previous Q3 results in 2016, and the results were positive overall. I discussed the results in more detail this November article.
Unlike other 2017 IPOs, such as Canada Goose Holdings Inc. and Roots Corp., Jamieson offers a dividend. The company’s long and successful history allowed it to be a dividend payer from the start. On November 16, Jamieson declared a third-quarter dividend of $0.08 per share. This gives the stock a yield of only 0.72%, but it’s a nice start. The stock isn’t currently reporting a P/E ratio, but the total return on the stock (combining share price increases with dividends) currently sits at 29.65% for the year, so shareholders have done well in 2017.
The company hasn’t had much news since the earnings and dividend reporting, other than a report of various industry awards bestowed on it this year. Fool contributor Joey Frenette also discussed the stock’s success in this recent article.
Bottom line
Jamieson Wellness has a well-known name in its industry and a long history. Its first public results look good, and the company has already started paying a dividend. This is a stock I certainly like right now.
