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Monday, February 27, 2017 5:22:28 AM
STB< Niche High-Dividend Stock Yields 8%, Pays Monthly In U.S. Dollars, Reports Record Revenue And EBITDA
Feb.26.17 | About: Student Transportation (STB
(Morning **D*A** hows everything up there? Garden starting?)
Summary
This niche industry stock yields 7.87% with a conservative 40% dividend payout ratio.
Its contracts average three to eight years, with a 95% renewal rate.
It reported record revenues and EBITDA in its most recent quarter.
Analysts are forecasting consensus EPS growth of 16.7% for fiscal 2017 and 71% EPS growth for fiscal 2018.
Remember the good old days of your youth, when you took the bus back and forth to school? "We had to wait in all kinds of weather, not like these spoiled kids today, whose moms schlep them back and forth in the latest fancy SUVs. Get off of my lawn you kids, and NO, you can't have your @#$% soccer ball back!" (OK, mean old Mr. Wilson from Dennis the Menace, that's enough out of you...)
Student Transportation (NASDAQ:STB) is in a unique position and represents a pure play - it's the only publicly traded school bus stock in the US market. It's based in Canada, but it pays its monthly dividends in US dollars since 90% of its revenues come from its US operations.
We've covered STB in a couple of previous articles and have been happily collecting those monthly payouts ever since. This article will update the information from those previous ones.
Profile: Founded in 1997, Student Transportation Inc. is North America's largest independent provider of student transportation solutions, operating more than 13,000 vehicles. STB focuses on rural and suburban areas, and has over 300 contracts that average 3-8 years, renewable.
The company's contract renewal rate is over 95%, over an 18-year period, so it must be doing something right. It operates in many US states and in certain Canadian provinces, with 90% of revenues in the US and 10% in Canada.
The thing is, even with all of those soccer moms driving kids back and forth to school, the old yellow school bus isn't going away anytime soon - there are half a million yellow school buses transporting 24 million students to and from school each day in North America.
Nearly 66% of all school buses are owned and operated by public school districts. The remaining 34% are owned or operated by some 4,000 private companies - this offers significant consolidation opportunities for larger service providers like STB.
Dividends: Another attractive feature of STB is that management announces the schedule for the next quarter's monthly payouts before the start of the quarter.
As we've noted in previous articles, STB isn't a dividend growth stock, but it is a dependable payer.
STB's Board of Directors, which reviews and approves the dividend on a quarterly basis in advance, has approved the monthly cash dividend of $0.03667 per common share for the remaining months of fiscal 2017. That marks the 150th consecutive monthly dividend announced since the Company became public 12 years ago.
The dividend, paid in U.S. dollars, is Canadian Dividend Tax Qualified and is a qualified dividend in the U.S. (Source: STB Fiscal Q2 '17 release)
more http://seekingalpha.com/article/4049431-niche-high-dividend-stock-yields-8-percent-pays-monthly-u-s-dollars-reports-record-revenue
Feb.26.17 | About: Student Transportation (STB
(Morning **D*A** hows everything up there? Garden starting?)
Summary
This niche industry stock yields 7.87% with a conservative 40% dividend payout ratio.
Its contracts average three to eight years, with a 95% renewal rate.
It reported record revenues and EBITDA in its most recent quarter.
Analysts are forecasting consensus EPS growth of 16.7% for fiscal 2017 and 71% EPS growth for fiscal 2018.
Remember the good old days of your youth, when you took the bus back and forth to school? "We had to wait in all kinds of weather, not like these spoiled kids today, whose moms schlep them back and forth in the latest fancy SUVs. Get off of my lawn you kids, and NO, you can't have your @#$% soccer ball back!" (OK, mean old Mr. Wilson from Dennis the Menace, that's enough out of you...)
Student Transportation (NASDAQ:STB) is in a unique position and represents a pure play - it's the only publicly traded school bus stock in the US market. It's based in Canada, but it pays its monthly dividends in US dollars since 90% of its revenues come from its US operations.
We've covered STB in a couple of previous articles and have been happily collecting those monthly payouts ever since. This article will update the information from those previous ones.
Profile: Founded in 1997, Student Transportation Inc. is North America's largest independent provider of student transportation solutions, operating more than 13,000 vehicles. STB focuses on rural and suburban areas, and has over 300 contracts that average 3-8 years, renewable.
The company's contract renewal rate is over 95%, over an 18-year period, so it must be doing something right. It operates in many US states and in certain Canadian provinces, with 90% of revenues in the US and 10% in Canada.
The thing is, even with all of those soccer moms driving kids back and forth to school, the old yellow school bus isn't going away anytime soon - there are half a million yellow school buses transporting 24 million students to and from school each day in North America.
Nearly 66% of all school buses are owned and operated by public school districts. The remaining 34% are owned or operated by some 4,000 private companies - this offers significant consolidation opportunities for larger service providers like STB.
Dividends: Another attractive feature of STB is that management announces the schedule for the next quarter's monthly payouts before the start of the quarter.
As we've noted in previous articles, STB isn't a dividend growth stock, but it is a dependable payer.
STB's Board of Directors, which reviews and approves the dividend on a quarterly basis in advance, has approved the monthly cash dividend of $0.03667 per common share for the remaining months of fiscal 2017. That marks the 150th consecutive monthly dividend announced since the Company became public 12 years ago.
The dividend, paid in U.S. dollars, is Canadian Dividend Tax Qualified and is a qualified dividend in the U.S. (Source: STB Fiscal Q2 '17 release)
more http://seekingalpha.com/article/4049431-niche-high-dividend-stock-yields-8-percent-pays-monthly-u-s-dollars-reports-record-revenue
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