There is much to be bullish about for Shaw Communications (NYSE: SJR), the Canadian cable company.
It has appeal to income investors, growth investors, and value investors. The company is growing and expanding, acquiring other businesses. The shareholders are rewarded with a generous dividend yield.
This looks to keeping up for the future, which should make investors bullish about Shaw Communications.
At present, the dividend yield is just over 4 percent. That is twice the yield for the average member of The Standard & Poor’s 500 Index (NYSE: SPY). There is also plenty of cash to increase the amount of the dividend.
That cash is produced by a solid profit margin.
The profit margin for Shaw Communications is 14.90 percent. That is about 50 percent higher than the average for a company on the Standard & Poor’s 500 Index. No matter what the business, it all comes down to the business making a profit at what it does in commerce with the public. The other margins are robust, too. Its return-on-assets is much better than others in the sector, which is a very bullish indicator for future growth and returns.
This is showing up in the stock performance for Shaw Communications.
The share price is up for the last week, quarter, six months, and year of market action. For 2014, Shaw Communications has risen by just over 6 percent. Combined with the high dividend yield, that makes for a solid total return.
Based on projections from the analyst community, that should improve.
Earnings-per-share for the past five years have been 1.50 percent. This year, earnings-per-share are 1.40 percent. For the next five years, earnings-per-share are projected to increase to 7.15 percent. Shaw is adding business cable customers to its portfolio of customers, also. The most recent analyst action was positive, too!
That is a bullish trend that should reward long term investors!