Updated May 27, 2021 by Bob Ciura
Monthly dividend stocks are very attractive to individuals like retirees because they make budgeting dividend income versus the cost of living a lot easier. We have compiled a list of all 55 monthly dividend stocks.
You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics like dividend yield and payout ratio) by clicking the link below:
Superior Plus Corporation (SUUIF) is one such company whose management team has chosen to pay shareholders a monthly dividend. And the company has an exceptionally high dividend yield.
To date, Superior Plus has returned over 4% – more than three times the average dividend yield of the S&P 500. Superior Plus’s high dividend yield and monthly dividend payments are two reasons investors might be interested in this stock.
This article analyzes Superior Plus’ investment prospects in detail to determine whether the company deserves consideration of the portfolios of dividend growth investors.
Superior Plus Corp is a relatively small industrial company, but one of the larger propanes Dealers in North Americaa. It has been publicly traded for over a decade. The company is the dominant distributor in Canada (35.2% of EBITDA), and has major operations in the US (64.8% of the total EBITDA). Superior Plus has annual sales of around $ 2 billion. and is based in Canada.
The company previously had a large specialty chemicals segment, but sold that business in 2021 as part of a larger reorganization. Superior Plus is reorganizing its business to become a pure distribution company.
The Energy Distribution segment of Superior Plus deals with the distribution and retail marketing of propane products, liquid fuels (including heating oil and propane gas) and the marketing of liquids in wholesaling. This segment operates primarily in Canada but expanded into the United States through a series of acquisitions that began in 2009. The energy distribution segment is operated under the trade names “Superior Propane” or “Superior Gas Liquids”.
It should be noted that Superior Plus is an international stock – it trades on the Toronto Stock Exchange under the ticker SPB and reports financial data in Canadian dollars. Buying stocks based outside of the United States carries a number of unique risks, such as: B. the currency risk.
Like many energy companies, Superior Plus was negatively affected by the coronavirus pandemic and the subsequent recession in the United States. However, the company is in the process of recovering along with the rest of the energy sector.
The boss’s business The year got off to a strong start. The first quarter results showed financial resilience.
Source: Investor Presentation
The Company Gan adjusted EBITDA of $17.48 Million, 14% higher than last year in constant currency. More precisely, Superior’s U.S. propane segment saw E.BITDA growth of 35.4% to $ 115.76 due to the contribution from acquisitions completed in the last twelve months and of colder weather.
The Canadian propane segment recorded a 12% decrease in EBITDA $ 63.5 Millions, mainly due to lower average margins associated with weaker individualsLesale propane fundamentals and lower sales Volume related to the impact of COVID– –19 and of warmer weather in western Canada. Adjusted operating cash flow per share remained stable at $ 0.70 compared to $ 0.71 in the same period last year.
Superior continues to strive to increase its EBITDA through acquisitions. In January and February the company acquired three companies, Holden Oil, Miller Propane and Highlands Propane are increasing their prevalence in the US and Canada Footprint.
On April 9, 2021 it was superior completed sales of its specialty chemicals, which it received $495 Million in Cash register. By concentrating on its sales activities, the company should achieve further cost efficiencies. The management continues to expect an adjusted EBITDA of C.$ 370– –$ 410 million, up 10% year over year in the middle (without the chemical business).
Competitive advantage and recession performance
As an operator in the power distribution industry, Superior Plus has competitive advantages, benefits from regulatory barriers to market entry and significant capital expenditures for market entry. Unfortunately, Superior Plus has not shown that it will hold up in all economic environments.
Expect a company that experiences such oversized declines in earnings per share to also cut its dividend if it reports losses. In fact, Superior Plus cut its dividend twice in 2011. More recently, the company has made it through 2020 without cutting its dividend. This is an achievement in itself because of the severe damage the pandemic has wreaked.
Superior Plus has reacted to this and noticeably reduced its leverage. Management already seems to be reaching its total indebtedness Adjusted EBITDA forecast of around 3.0x to 3.5x (see figure) was 3.6x from Q.1.
The dividend yield will likely make up the majority of the future returns on the Superior Plus, as there has been no share price growth over the past decade. Superior Plus currently pays a monthly dividend of $ 0.06 per share in CAD, or $ 0.72 per share on an annual basis. At current exchange rates, this equates to approximately $ 0.60 per share in US dollars.
The company has paid the same dividend over a long period of time. US investors must take into account that the company pays its dividends in Canadian currency, which will affect the amount of capital actually received due to exchange rate fluctuations. Based on an annualized dividend payout of $ 0.60 per share, Superior stock has a current dividend yield of 4.8%.
Superior Plus is expected to earn $ 1.75 this year, giving the company a projected payout ratio of 34% for 2021. At the moment, the dividend seems safe due to the low payout ratio. However, Superior Plus has not increased its dividend and will not expect to do so in the near future.
Because of this, we believe Superior Plus is a risky stock that high income investors need to hold on to, especially during a commodity downturn or global recession.
Superior Plus’ high dividend yield and monthly dividend payments help this stock stand out from other dividend investments, especially for income-oriented investors like retirees.
Some due diligence shows that this particular security has an overwhelming track record. Investors shouldn’t expect a dividend hike in the near future.
We also don’t expect strong earnings per share growth or a growing valuation multiple, so dividends are the main source of expected returns. For investors who are solely interested in income, Superior Plus stock could be attractive on this basis.
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