Diary of a Dividend Diva: A Hidden Gem
As longtime readers know, I generally focus on the dividend-capture trade, but I occasionally stumble upon a high-yielding gem that is worth holding for the income and appreciation. The latest such name to pop onto my radar screen is Just Energy (JE), a Canadian independent energy marketer that sells gas and electricity to deregulated markets in the U.S. and Canada. Despite (or because of?) solid growth, Just Energy pays out a substantial portion of its earnings before interest, taxes, depreciation and amortization on a monthly basis, and it currently yields more than 11%. This yield is above my normal target yield for the dividend rotation strategy, so I do not mind just holding it and collecting the checks.
Just Energy was formed in 1997 to sell gas to the deregulated market in Ontario, and went public in 2001 on the Toronto exchange. From that time, the company has grown -- both organically and through acquisition -- from 217,000 customers in one province to nearly 4 million customers in Canada and 14 U.S. states. The company has grown "adjusted EBITDA" to $283 million last year from $116 million in 2006, an impressive and steady rate of growth. JE now has market capitalizaiton of $1.5 billion and enterprise value of $2.3 billion....371 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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