Rogers Sugar: In Times Like This, Boring Is Beautiful

The Affluent Tortoise
2.35K Followers
(13min)

Summary

  • Amid the current market turmoil, Rogers offers a stable 6.5% dividend yield in a business that has limited direct exposure to U.S. tariffs.
  • With a dividend payout ratio of 61%, Rogers has substantially improved its dividend coverage from its 5-year average of 85%.
  • At 9X earnings, the company is currently trading at an attractive valuation relative to its 5-year average P/E of 14X.
  • Driven by growing industrial demand for sugar, for the first time in recent decades, the company is investing in production expansion through its $300MM LEAP project.

Lantic sugar factory building in Vancouver, Canada

Michael Wels/iStock Editorial via Getty Images

Investment Thesis

As the current market volatility spreads from equities to gold and treasury bills, now is not the time to get adventurous with stock selection. The current climate of uncertainty warrants an emphasis on

This article was written by

2.35K Followers
I am a value-oriented investor who seeks out high-quality companies with long histories of dividend growth. I believe that patient investors who build a core portfolio of dividend paying equities can achieve their retirement goals without taking on unnecessary risk. Dividend growth profiles are the best indicators of management's commitment to returning cash to shareholders. Dividend growth investing involves identifying quality companies with competitive advantages that provide visibility towards future cash flow growth. Warren Buffet once wrote "If you don't find a way to make money while you rest, you will work until you die". Fundamental analysis and patience are the tools I use to build a portfolio of equities that will enable my very comfortable retirement. Join me in exploring value and growth-at-a-reasonable-price opportunities and in building your own income-producing portfolio of dividend stocks. I am an investor with over 20 year of experience in the market. I hold a B.Mgt and an MBA where I enjoyed studying both corporate and personal finance.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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