Stock focus: Sterling Shoes Income Trust (SSI.UN)
Sterling Shoes is a shoe retailer that has achieved exceptional growth in the last two years. With continuous monthly distribution increases, and more expansion in Canada, this company is definitely making a name for itself. Unlike another shoe retailers, this one operates with surprisingly high margins around 50% and has low cost operations. It has had double digit growth with a P/E of around 10.
I'm generally not a big fan of retail as it can be volatile, but this company has proven itself and has grown successfully. In the last year they've increased advertising in the Toronto subways and has opened several stores in this city. Shoes are a high margin business that most females cannot avoid. Their stores are well lit, classy, and inviting.
For 2 consecutive years now, they've paid a special dividend at the end of the year. Since November, the monthly cash distributions have increased 14%. This is one of the few excellent income trusts that has actually increased in value since Flaherty's bombshell on Halloween.
As a whole, I'm not a big fan of the income trust sector, but if this one continues to grow, investors will definitely be rewarded.
Disclosure: I own Sterling and have owned it since December. Even if the share price remains stagnant, the 9% distribution yield is more than enticing to hold it in my opinion. As always, this is strictly my opinion, please do your own research before purchasing.
I'm generally not a big fan of retail as it can be volatile, but this company has proven itself and has grown successfully. In the last year they've increased advertising in the Toronto subways and has opened several stores in this city. Shoes are a high margin business that most females cannot avoid. Their stores are well lit, classy, and inviting.
For 2 consecutive years now, they've paid a special dividend at the end of the year. Since November, the monthly cash distributions have increased 14%. This is one of the few excellent income trusts that has actually increased in value since Flaherty's bombshell on Halloween.
As a whole, I'm not a big fan of the income trust sector, but if this one continues to grow, investors will definitely be rewarded.
Disclosure: I own Sterling and have owned it since December. Even if the share price remains stagnant, the 9% distribution yield is more than enticing to hold it in my opinion. As always, this is strictly my opinion, please do your own research before purchasing.
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