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Hidden Dividend Stock: High Liner

If you’re a fan of dividend paying stocks consider looking at High Liner Foods (HLF-T). Over the past 52 weeks the stock has traded at a high of $21.60 and low of $12.80. Today the shares can be picked up for $13.41.

Since 2004 the board has increased the dividend payout starting from $0.013 to $0.145 quarterly. Nearly each year has seen a rise in the dividend payout. A quarterly dividend payout of $0.145 equates to an annual divided of $0.58. This represents an annual dividend rate of 4.3%.

In terms of market performance High Liner hasn’t performed well when compared to gains the rest of the TSX has experienced over the past few years. This can be attributed to the fact that revenue and earnings have remained flat. The company has faced efficiency and recall issues which may be the reason investors have sold their positions in the stock while seeking more attractive returns in the market. This decline in combination with management increasing the dividend has offered an attractive increase to the dividend yield for new investors with an opportunity to see an increased stock price.

Revenue annually for the company remains close to $1 billion and the company continues to have earnings to support future dividend payments.

As High Liner continues to focus on increasing efficiencies for 2018 and beyond this should help increase earnings. My 12 moth price target for High Liner is $20.00, representing a 48% increase from today’s current price.

At the time of writing this article I currently have a long position in High Liner foods.

 

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