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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 (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...

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