Algoma Central Corp T.ALC

Expecting special Dividend??

[Castortroy2020]

[Thor16]

Great question.  Lots of cash however not much clarity on how much will be required in the near future (Jv costs etc).  It certainly could be the case, or perhaps increased regular, or both.  If they don't pay a special it could be the case there is a corporate action of some other sort coming up was well.  What do you think?

[porksniffer]

Special dividend last time was not announced at earnings release. It was announced seperatly in middle December payable the following year, likely to delay paying taxes. I wouldn't expect anythng until then. That said, I'd rather another big raise in the quarterly dividend instead of a one time special. Haven't seen any raise in 2 years now.

[DanGood38]

The markets are pretty unforgiving. Even with good earnings news this stock trades on dividends only as investors look for yield.

[porksniffer]

As this is a low growth and cyclical sector most if not all returns are from dividends so you are correct in saying this trades on dividends. Using the dividend discount model share price is about right for a 68 cent dividend growing at 20-25% annually with a 9-10% discount rate not counting any special dividends as they are unpredictable.

[porksniffer]

Well.....this was a well thought out prediction. Panned out exactly. *pats self on back* $1.35 special coming your way in Jan https://www.algonet.com/wp-content/uploads/2022/12/Algoma-Central-Corp_Special-Dividend.pdf

[stockpunter]

Well, as my supervisor once told me, if you don't wave your own flag, no one is going to do it for you.  My TFSA, comrpised almost entirely of dividend stocks,  now has three in the green.   Got any other bright ideas? 

[stockpunter]

ALC also has a share buy-back program.  Can anyone tell me how vigorously they are executing that? Companies often announce these, but then do not follow through, or so I have read.

[porksniffer]

They bought 18,172 for $16.59 for the first time all year November 30. I don't think they have room for both. This dividend will cot a cool $51 million.  I don't see them go all out on purchases as the stock is fairly valued here.  I've been looking at Algoma Steel. Huge buybacks with a solid 3.5% yield and at it's low for the year. Patience will be needed but the

[stockpunter]

Thanks.  My investment theme for 2023 will be to buy everything Algoma.  Cannot wait for this sh*ty year to be over.