Topic: Growth Stocks

Stock Pickers Digest Hotline – Friday, February 12, 2016

Article Excerpt

TOROMONT INDUSTRIES LTD., $28.56, symbol TIH on Toronto, distributes a range of industrial equipment, including machinery made by Caterpillar Inc. It also makes refrigeration systems through its CIMCO division. In the three months ended December 31, 2015, the company’s revenue rose 1.4%, to $472.0 million from $465.7 million a year earlier. However, earnings fell 2.8%, to $44.4 million, or $0.57 a share, from $45.7 million, or $0.59. Toromont saw weaker demand from customers in construction and mining. The company had to cut its prices to compete, and that lowered its profit margins and earnings. The stock trades at 14.9 times Toromont’s forecast 2016 earnings of $1.92 a share. The company is raising its quarterly dividend by 5.9% with the April 2016 payment. Investors will now receive $0.18 a share instead of $0.17. The stock yields 2.5%. Toromont last raised its dividend in April 2015, by 13.3%, to $0.17 from $0.15. The company has raised its dividend every year for 27 years. OUR…