Domtar Corporation (UFS) is one of the highest paying dividend stocks we cover (dividend yield = 3.85). But we do not consider it one of the best monthly dividend stocks we cover. We will explain why in this report.
Domtar Corporation (UFS) designs, manufactures, and markets a range of fiber-based products. The company operates in two segments. Its Pulp and Paper segment is engaged in the design, manufacturing, marketing and distribution of communication papers, specialty and packaging papers, softwood, fluff & hardwood market pulp. Its Personal Care segment is involved in the manufacturing, marketing and distribution of absorbent hygiene products.
Domtar is the largest integrated producer of uncoated freesheet paper in North America and second largest in the world. It serves 50 countries around the world and currently has sales of roughly $ 5.3 billion. Domtar is headquartered in Fort Mill, South Carolina.
Sales per share at Domtar (UFS) have not increased much over the last seven – eight years, but profitability has. Profits and cash flows, of course, can be erratic. But the trend for both appears up. Cash flows have been consistently positive over this time frame, and free cash flows have been almost exclusively positive.
UFS did not pay a dividend prior to 2010. But once it started paying a modest dividend in 2010, it increased that dividend every year. Furthermore, Domtar appears modestly priced. Its price relative to profits, cash flows, or sales is on the low side.
Still, Domtar’s overall fundamentals are only average. This company is not remarkably good or bad. And the highest we could justify rating its overall stock fundamentals is a “C” (i.e. fair or average). We would not consider this one of the best dividend paying stocks we cover.
Stat Sheet – Domtar Corporation USA 4/15/16
|Industry||Paper & Paper Products|
|Market Cap||$ 2,614|
|Growth Prospects||Above Average|
|Price Volatility||Above Average|
(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)
If you would like to see the stocks we would consider our top dividend paying stocks (as well as stocks that have other characteristics we feel are admirable) click the link below.
Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.