The Globe and Mail reports in its Tuesday edition that rising interest rates are generally bad news for dividend-paying stocks. Globe columnist Gordon Pape writes that as returns on safe government bonds rise, investors tend to shift more money away from stocks and into fixed-income assets. Some big names, however, have resisted the downward pressures and have held up well so far this year. One of these is
ZCL Composites. Mr. Pape says that ZCL is trending higher this year thanks to decent year-end results and a dividend increase. This maker of underground fibreglass storage tanks reported record revenue of $188.2-million for 2017. Profit from continuing operations was down slightly to $18.4-million or 59 cents a share, but that did not stop the directors from approving a 13-per-cent dividend hike, to 13.5 cents a quarter (54 cents a year). The stock yields 4.5 per cent at the current price. ZCL closed Monday at $11.99, down 12 cents on the Toronto Stock Exchange.
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