Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Is Student Transportation Steering Toward A Ditch?

There's a long custom of Canadian companies structuring themselves in such a way that they convey a large percentage of earnings and/or operating income to shareholders in the form of dividends. In days past, these distributions were screened from taxation by companies organizing themselves as royalty trusts (CanRoys), but the Canadian government largely shut that process down years ago.

In any case, Student Transportation (NASDAQ:STB) is a Canadian company that provides school busing services in the U.S. and funnels a very large percentage of its cash flow to shareholders in the form of dividends. That has made the company a high-yield option for dividend investors, but I wonder if optimism about the company's yield and future growth prospects...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details