Tuesday, March 14, 2017
Recent Buy CMP
I was able to add a share of CMP today at 69.50. This brought my overall cost basis down from 71.07 per share to 70.55. In this market I'll take a 14.5 P/E ratio for a 4.15 percent yield. Most of what you look for in a dividend growth stock is here. It has 14 years of dividend increases and just recently increased it's dividend this quarter from .695 per share to .72 per share. That's a 3.60 percent increase. The one thing that it's missing is a good payout ratio. At 84% the payout ratio is high. But not enough to keep me away. Morningstar currently rates Compass Minerals International as a 4 Star Stock with a fair value estimate of $91. This is a company that produces minerals including salt, fertilizer and sulfates. The salts they produce are used in road deicing and swimming pools. They've been around since 1993 and I think there will be a need for the minerals they produce going forward. One reason for the low price for Compass minerals is the mild winters have cut into profits. I don't think we've seen the end of snow.