Monthly dividend stocks have gained popularity among retirees due to their ability to provide consistent income for living expenses. Are you interested in exploring this investment option further? Dive into our comprehensive list of 78 monthly dividend stocks, complete with essential metrics like dividend yield and payout ratio. Click the link below to download our detailed Excel spreadsheet for a closer look.
Superior Plus Corporation (SUUIF) is a standout player in the realm of monthly dividend stocks. Boasting an impressive dividend yield of 9.4%, significantly higher than the S&P 500, this company captures the attention of investors seeking regular income. Join us as we delve into a detailed analysis of Superior Plus to determine its viability for income-oriented portfolios.
Business Insight
Superior Plus Corporation, a prominent propane distributor in North America, operates primarily in Canada and the U.S. With annual revenues around $2.5 billion, the company recently underwent a strategic transformation to focus solely on distribution activities, shedding its Specialty Chemicals segment in 2021. Its Energy Distribution segment, which includes propane and fuel distribution services, has been steadily growing through acquisitions since 2009.
Financial Performance
Superior Plus recently reported robust Q4 results, with adjusted EBITDA increasing by 17% compared to the previous year. Despite a seasonal decline in cash flow per share for the quarter, the full year showcased impressive figures, highlighting the company’s stability and growth potential. Looking ahead, management anticipates a 5% growth in adjusted EBITDA for 2024, signaling positive momentum.
Growth Trajectory
Weathering the challenges posed by the pandemic, Superior Plus saw a slight dip in earnings in 2020 but has since rebounded, projecting a 5% increase in adjusted EBITDA for the coming year. While fluctuations in the market may impact its performance, the company remains optimistic about its outlook. However, investors should remain mindful of potential risks associated with international stocks and currency fluctuations.
Dividend Assessment
With a generous annualized dividend of $0.73 per share in CAD, equivalent to approximately $0.54 per share in USD, Superior Plus offers a substantial yield of 9.4%. The sustainable payout ratio of 35% for 2024 indicates the company’s commitment to dividend stability. While the dividend has remained constant over the years, investors should be aware of the currency impact on actual returns.
Final Verdict
Despite its attractive yield and consistent monthly payouts, Superior Plus presents some risks for income investors, particularly during economic downturns. While the stock may not offer significant growth potential, its dividends remain a key source of returns. Investors focused on income generation may find Superior Plus an intriguing option, provided they understand the associated risks.
In conclusion, monthly dividend stocks like Superior Plus offer a unique avenue for income-focused investors seeking reliable returns. While the stock may not be without its challenges, its monthly dividend payments and competitive yield make it a compelling choice. Explore more monthly dividend stock opportunities and investment ideas to diversify your portfolio and optimize your income potential.
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