SIS:CC - This 3% Dividend Stock Pays Cash Every Month
2023-06-22 19:15:00 ET
Savaria ( TSX:SIS ) is a Laval-based company that provides accessibility solutions for the elderly and physically challenged people in Canada, the United States, the United Kingdom, rest of Europe, and around the world. Today, I want to discuss why Canadian investors should be eager to snatch up this dividend stock at the midway point in 2023. Let’s jump in.
How has this dividend stock performed over the past year?
Shares of this dividend stock have dropped 1.4% month over month as of early afternoon trading on Thursday, June 22. Savaria stock has climbed 18% so far in 2023. Its shares are now up 27% in the year-over-year period at the time of this writing. Investors can see more of its recent performance with the interactive price chart below.
Here’s why I’m excited about Savaria for the long term
Canadian investors should seek exposure to the burgeoning personal mobility devices and accessibility market. Indeed, Canada’s aging population and an aging population across the developed world means that there will be increased demand for these products. Grand View Research recently valued the global personal mobility devices market at US$14.9 billion in 2021. The same report projected that this market would expand at a compound annual growth rate (CAGR) of 6.3% from 2022 through to 2030.
Fortune Business Insights, another top market researcher, also valued the global personal mobility devices market at US$12 billion in 2022. It forecasts that this market will rise to US$19 billion by 2030. That would represent a CAGR of 6% over the projected period.
Savaria unveiled its first-quarter fiscal 2023 earnings on May 10. The company reported total revenue of $211 million — up 15% compared to the previous year. Meanwhile, gross profit increased 23% year over year to $72.0 million. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. Savaria last reported adjusted EBITDA of $31.2 million in the first quarter of fiscal 2023, which was up 27% compared to the first quarter of fiscal 2022. The company’s adjusted EBITDA margin also improved by 140 basis points to 14.7%.
The company posted adjusted net earnings of $8.38 million, or $0.13 per diluted share — up 24% and 30%, respectively, compared to the prior year. Marcel Bourassa, Savaria’s president and chief executive officer heaped praise on Savaria’s first-quarter fiscal 2023 earnings. Revenues in its accessibility segment made up 72% of its total revenue and posted organic growth of 14.4%. Adjusted EBITDA in its accessibility segment increased 15% year on year to $23.4 million.
Is this dividend stock worth buying today?
Looking ahead, Savaria projected strong organic growth from its Accessibility and Patient Care segments going forward. The company now expects revenue growth between 8% and 10% for the rest of fiscal 2023.
Shares of this dividend stock currently possesses a price-to-earnings ratio of 30 . That puts this dividend stock in favourable value territory compared to its industry peers. Savaria is geared up for strong earnings growth going forward. The stock currently offers a monthly dividend of $0.043 per share. That represents a 3% yield.
The post This 3% Dividend Stock Pays Cash Every Month appeared first on The Motley Fool Canada .
Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
2023