Rogers Sugar Inc (TSX:RSI) stock just saw its dividend yield hit 7.8%. This bargain may not last long.
Historically, Rogers Sugar was set up as a pure income-producing vehicle, redirecting profits from its sugar plantations to shareholders. In recent years, it’s expanded into value-add products like maple sugar to support long-term growth and diversify profits.
This winter, severe weather caused a crop failure, which will cause a huge blow to the financials over the next few quarters. In response, shares dipped from $6 to $5.
Notably, this year’s crop failure won’t be a long-term issue. The market has properly reacted to a short-term headwind, but over the long term, the company’s prospects are fully intact.
If you can keep a multi-year time horizon, you can scoop up shares and lock-in an abnormally high dividend yield.
Canadian Personal finance 