Any toughts on Transcontinental Inc. (TCL-A.TO)

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Hi there, I would like your toughs on Transcontinental Inc. They’vre been up lately, Even higher than before the pandemic. Would that be a good pick for growth dividend ? Thanks again for all the great work !

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Asked on December 1, 2020 7:18 am
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Hey there.

In terms of dividend growth, TCL is an excellent option. 18 year dividend growth streak, 6.84% annual dividend growth over the last 5 years and the company's payout ratios leave lots of room for growth. In terms of earnings, its payout ratio is only 35.02% and in terms of free cash flow, only 18.63%.

The company is posting mid single digit revenue growth annually over the last 5 years but the one thing that concerns me is shrinking earnings. Over the last four years, the company has seen a decline in earnings per share. It still has a lot of room to grow the dividend even with declining earnings. However, this is something you need to pay attention to, for sure.

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Posted by Dan Kent
Answered on December 1, 2020 8:34 am