AMCOL International Corporation
(
ACO
) has a long history of regularly paying and increasing dividends.
The stock currently yields 2.3%, and hit its 52-week high of $36.28
on September 19. With positive surprises in three out of the last
four quarters, this Zacks #2 Rank (Buy) industrial minerals
provider looks like an attractive possibility for investors seeking
both growth and income.
Dividend
AMCOL International has been regularly paying dividends and
increasing the quarterly rates at intervals since 1937. The 5-Year
average dividend yield for the company stands at 2.6%, while the
stock currently yields a solid 2.3% based on annual dividend rate
of 80 cents per share.
It recently increased its quarterly dividend rate by 11.1% to 20
cents from 18 cents. In 2011, the company paid roughly $22.8
million as dividends.
Other Catalysts
In the second quarter report announced on July 27, the company put
together a solid 14% earnings surprise. Earnings per share of 65
cents topped the Zacks Consensus Estimate of 57 cents, while
improving from last year's 42 cents.
Revenue grew 6.1% to $257.5 million on the back of solid
performances at the Minerals & Materials and Oilfield Services
segments. Operating margin was recorded at 10.6%, against 8.8% in
the year-earlier quarter.
ACO is scheduled to report again on October 26.
Earnings Momentum Moves Higher
Over the last 90 days, the Zacks Consensus Estimate for 2012
advanced 2.9% to $2.16 per share. Meanwhile, the Zacks Consensus
Estimate for 2013 remained at $2.26. These estimates represent
year-over-year growth of 18.7% for 2012 and 4.5% for 2013.
Valuation
AMCOL International is currently trading at a forward P/E of 15.8x
compared with 19.8x for the peer group. The company's ROE stands at
16.3%, versus with the peer group average of 9.1%.
As can be observed from the Price & Consensus chart below;
prospects appear bright as the Zacks Consensus Estimates are
trending higher for upcoming years.
The dividend increase, solid quarterly results and bright prospects
bode well for AMCOL International and make it an attractive
investment option.
AMCOL International Corporation, founded in 1927, is headquartered
in Hoffman Estates, Illinois. The company is worth $1.09 billion
and produces minerals and various products and services for
industrial and consumer markets. It has clients in the Americas,
Europe, the Middle East, Africa, and Asia Pacific.
Want More of Our Best Recommendations?
Zacks' Executive VP, Steve Reitmeister, knows when key trades are
about to be triggered and which of our experts has the hottest
hand. Then each week he hand-selects the most compelling trades and
serves them up to you in a new program called
Zacks Confidential
.
Learn More>>
AMCOL INTL CP (ACO): Free Stock Analysis Report
AMCOL INTL CP (ACO): Free Stock Analysis Report
AMCOL INTL CP (ACO): Free Stock Analysis Report
To read this article on Zacks.com click here.