Bullboard - Stock Discussion Forum Norbord Inc. T.OSB

Forest Products Lumber & Wood Production

"Norbord is the largest global producer of oriented strand board, which is used as a structural panel for building applications. The majority of its mills are located throughout the United States, with additional capacity in Northern Europe."

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TSX:OSB - Post Discussion

Norbord Inc. > RECORD EARNINGS REPORT

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Post by Kisu on Nov 06, 2017 2:42pm

RECORD EARNINGS REPORT

20% increase in Dividend, and the stock basically crashes and seems to be morphing into a dog. What a dissappointment this has been.

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Comment by carlocarli on Nov 06, 2017 4:08pm

Their dividend payout rate (proportion of net earnings paid out as dividend) may be beginning to raise concern among investors. About 8 year ago, OSB (then called NBD) had financial problems, in great part due to unsustainable dividend payouts; they barely avoided bankruptcy. The market may be concerned by a dividend yeld in excess of 5%; I know I am uneasy about it; I would feel more comfortable ...more

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Comment by Kisu on Nov 06, 2017 4:30pm

That is one possibility. According to RBC research, OSB prices are down because distributors are holding back on buying hoping for further price declines in what is supposed to be slower upcoming season. However, the slower season may not be as slow as expected what with all the required rebuilding in Texas, Florida, Caribbean, and California due to hurricanes and fires.

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