I do not own Algoma Central Corp. (ALC) but at some point in the future I will. Why? Good company, well run with an excellent history when it comes to paying dividends. Today the yield is 5.1% with a payout ratio of only 32.71%. ALC has chalked up 28 dividend paying years and its DRG for the past three years is 30%
Also, ALC has a good moat. It is the only stock in the TSX Marine Shipping sector. If you like diversity, adding a little ALC today looks like a good move.
Why am I holding back? The stock is fairly valued today. I like a bargain. I can afford to wait for a more appealing entry point. When it appears, I'm in.
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