Topic: Dividend Stocks

CAE INC. $10 – Toronto symbol CAE

CAE INC. $10 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 257.6 million; Market cap: $2.6 billion; Price-to-sales ratio: 1.5; Dividend yield: 1.6%; TSINetwork Rating: Average; www.cae.com) earned $38.4 million in the quarter ended September 30, 2011. That’s down 1.8% from $39.1 million a year earlier. Earnings per share were unchanged at $0.15 on more shares outstanding.

If you exclude costs to integrate Medical Education Technologies, Inc. (METI), which CAE recently purchased for $130 million U.S., CAE would have earned $41.1 million, or $0.16 a share, in the latest quarter. METI makes medical simulators and other products for training paramedics and medical students.

Revenue rose 11.7%, to $433.5 million from $388.0 million. METI contributed $7.1 million to the increase. In addition, demand for CAE’s flight simulators and pilot-training services continues to rise as airlines replace their aging planes with newer models.

CAE is a buy.

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