Business & Investment

The stock of these toilet papers has a big dividend

Toilet paper popped off the shelves in March and April 2020 for fear of a coronavirus pandemic. The insidious COVID-19 continues to spread rapidly, which could lead to further blockades on the cards. I don’t think the 2020 top trend of hoarding tissue paper, paper towels and toilet paper will be the theme for this year, but despite the ever-increasing number of cases, fear of mutant variations in Canada Stocking top toilet paper is a big buy for them. dividend. Also, I think that the top stocks of toilet paper have been squeezed recently, suggesting that the “hoarding of toilet paper” trade is off the table.

Toilet paper inventories can’t make as much money as they did in early 2020, but they can offer a well-covered and abundant dividend. In a pandemic where dividend cuts are widespread, it’s really all the income investors can ask for.In this work we will look KP tissue (TSX: KPT) And cascade (TSX: CAS), Boasts handsome yields of 6.8% and 2.1%, respectively. The former stock price is under extreme pressure, with stock prices falling more than 23% from their highs, while the latter is stuck in an integrated channel.

KP tissue

Paper product producer KPT issue is oversold here. Stock prices are in the bearish territory as pulp and paper prices continue to fluctuate sharply. Toilet paper is a necessity that is likely to experience a very stable demand over time, but the company is not affected by the fluctuating price of input costs.

However, in the long run, input costs can be kept low. This could be a tailwind for KPT issues over the next few years. At the time of this writing, KPT shares are trading at a very reasonable price of 1.5 times their book value. Most of the analysts covering the name have a “hold” rating. The National Bank’s Zachary Evershed is the most bullish, with a lonely “buy” valuation and a $ 15 price target, which means a 42% increase from current levels.

Unfavorable input cost movements can weigh on KP’s dividends, but I don’t think large payments are at risk.

cascade

Cascade is another play of paper products that I think investors should buy for dividends.Yield is not so rich As something like KP tissue, I’m a fan of companies that focus on tissue products made from recycled fibers. This stock is not well known to Canadian ESG investors, but it is worth adding to your shopping list.

Fool of fellow Jed Loren I think so. He believes the name could benefit from the continued growth of e-commerce packages and could be a meaningful long-term source of growth for “boring” companies.

“Specifically, I’m interested in e-commerce packages. It’s a well-known fact that I believe e-commerce is one of the most important emerging industries in the world. Cascades is the custom needs of each merchant. We offer a variety of box types to suit your needs, “says Lloren.

He is right Analyst Zachary Evershed’s target price for the stock is very high at $ 22, up 42% from today’s levels.

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Stupid contributor Joey Frenet There are no positions in any of the listed stocks.

The stock of these toilet papers has a big dividend

https://www.fool.ca/2021/01/22/these-toilet-paper-stocks-have-great-dividends/ The stock of these toilet papers has a big dividend

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