SPOXF - Sprott: A Portfolio Hedge That Yields 3.75%
Investment Thesis
Sprott Inc. (SPOXF) is a very profitable company that pays a quarterly dividend. The company has a solid balance sheet with net debt below zero. I view Sprott as a natural portfolio hedge, but rather than paying for the cost of the hedge, you are rewarded with a dividend yield of 3.75%. Sprott has been paying CAD 0.03 per quarter since 2011.
The industry where Sprott operates in is presently out of favor, following the decline from the peak in 2011. Sprott is, regardless of that, very profitable due a trusted brand, a