Algoma Central Corporation Is Eye-catching

Algoma Central Corportation (ALC) is eye-catching, at least when it comes to my eyes. I became aware of ALC when I worked at a small newspaper in Sault Ste. Marie, Ontario. A lot of companies with Algoma in their name had their roots in the Sault. Algoma Central Corporation was one of them.

Algoma Central operates the largest fleet on the Great Lakes and it has interests in ocean shipping as well. To an outsider, like me, it seems well positioned within the marine transportation logistics sector.

One downside to ALC is the cyclical nature of the shipping business but to an investor with a positive outlook this volatility means this is a stock that can be bought low and sold high repeatedly. I'm a positive investor. I like volatility.

As my interest in ALC grew, I decided to see who exactly has money in this shipping company. I discovered the Jackman family of Toronto holds something like 27% of the business through their large interest in E-L Financial Corporation. 

But that is not the end of the Jackman family interest in ALC. The Jackmans, I believe, also own a controlling interest in Amogla Holdings and Amogla Holdings holds about 30% of the ALC stock. E-L Financial and Amogla Holdings together own something in the neighbourhood of 57% of the ALC stock.

The third biggest shareholder is Macquarie Investment Management Limited. This is an Australian company committed to sustainable investing with the aim of delivering excellent long-term results to its clients. Is it working? You better believe it. With a staff of more than 20,000 worldwide, Macquarie reported a net profit after tax of  $3.522 billion U.S., for the 55th consecutive year of profitability.

The more I looked into ALC the more I liked it. But, I am a dividend investor. Is ALC the right fit for my style of investing? It has a dividend yield of 5.33% today. Nice, and it is worth noting that the company has a history of increasing its quarterly dividend. A further bonus, ALC has paid a special dividend in three of the past five years. Since 2018 ALC has paid a special dividend of  $4.75 per share.

Algoma Central Corporation's low valuation with a focus on debt reduction, its growing dividend yield, and its strategic, global fleet expansion all say "buy" to me.