Remarkable stocks that pay dividend are greatly coveted on equity markets, that too with a good reason. It gets even better when the stocks are found to be relatively cheap on the basis of valuation.
Russel metals is an example of such a stock. It is one of the biggest companies of metals distribution in North America. Although the firm enjoys a good position in the market, its current economic climate hasn’t been very kind to their industry. Tariffs and the continuously escalating tensions between the United States and China have had huge impact on the prices of metals and have dragged them down. Furthermore, the demand for the metals is also facing a huge threat. These headwinds have also played a great role in the sub-par performance of Russel Metals over the last year, in which, the company shed almost 23 percent of its value. The Company’s Year to date stock is comparatively down as well.
However, the investors are seeing this as a huge opportunity. As its share price has dropped in the last few months, Russel Metals is so far trading only at 6.08 times the past and 8.29 times the future earnings, and thus, the stock of the firms is attractively valued. Furthermore, the company is also offering a remarkable dividend yield to its investors. The dividend yield is currently at 6.92 percent. The 44 percent of the payout ratio of Russel is very conservative showing that there is room for growth for the dividend payouts. Regardless of a slowdown in the earnings in the last two quarters, the firm seem well equipped for continuing to reward shareholders by the way of dividends.