I had been waiting so patiently to purchase CCL industries and had a buy in for $42 for a while now. Kaboom off like a rocket today. Congrats to those who hold it. Great company. Now I will have to re-evaluate my new entry. ( does a Charlie brown walk away...)
They look like a good company, the yield was always a little low for me - has never really gotten above 3%. Sometimes though, you miss out when you wait too long on a good company.
CCL's bump was a huge surprise for me -- glad I jumped in when I did. The low yield did not concern me as they have a solid history of increasing their dividends, so this is a great addition to a long term portfolio.
Great dividend history. At least there is a gap now between 46 and 48 "to be filled" if you believe in that. Still waiting for my order to be filled with Saputo as well - After it gapped up, I set a buy in the middle.
From the time this thread was created a little over 4 years ago, CCL.B has provided a 50% annual rate of return. It's now worth almost 6x the price from Jan 2013. I own some in my Lowdiv portfolio.
This isn't a tiny stock, either. The market cap is $10.8 billion.
It would be unfortunate if a "dividend investor" ignored this stock because the 0.8% yield was too low.
I ignored it as the yield did not fit my criteria...that one got away but I did get Premium Brands at $17 that did have my required payout. Both are rockets.
CCL never hit my radar until I noticed it was in the top holdings in the Mawer Canadian Equity fund. The growth has been impressive. I didn't buy until recently in the $280s and plan on holding for the long term. The low yield isn't ideal but for a long term hold Im fine with it and the dividend growth has been impressive. Awesome stock for anyone who bought below $100
... the Underwriters have agreed to purchase from the Selling Shareholder on a bought deal basis five million Class B non-voting shares ... at a price of C$66.65
Valuations in my opinion are still way too high. P/E circa 25 and P/B circa 5. You have to believe they can double their current EPS in the next ~3-5 years to buy into those numbers.
What do you think, is this a good time to add to CCL.B ? For investors who still believe this is a solid investment, the current price just under $60 could be a good entry point as it's come down a bit.
Last 10 years is 23% annualized, last 15 years is 20.5% annualized performance.
You have to believe in a continued acquisition story the likes of the past to warrant the future being somewhat like the past. I doubt that is possible because increasing size makes it increasingly difficult to keep up the pace. Up to you to decide whether current valuations are in line with the story.
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