Tootsie Roll (NYSE:TR) is a Chicago-based company that manufactures and sells candy products. Shares of Tootsie Roll have climbed 14.2% in 2019 as of early afternoon trading on April 12. The stock is up 26.5% from the prior year.
Tootsie Roll is of interest to us today because it is a dividend king. It has achieved over 50 years of dividend-growth, making it a highly attractive target for investors on the hunt for steady income. The company released its fourth-quarter and full-year results for 2018 on February 12.
Net sales were largely flat year-over-year at $515.2 million compared to $515.6 million in the prior year. Net earnings fell to $56.8 million compared to $80.8 million in 2017.
Tootsie Roll earnings were negatively impacted in the full-year by significant increases in freight and delivery expenses. This increase began in the fourth quarter of 2017.
On the other hand, Tootsie Roll has received a boost due to the impacts of the U.S. Tax Cuts and Jobs Act which was enacted in December 2017.
Tootsie Roll currently boasts an annual dividend payout of $0.36 per share. This represents a modest 0.9% dividend yield. The company has achieved dividend-growth for 53 consecutive years.
Tootsie Roll stock is trading at the high end of its 52-week range. Shares had an RSI of 64 as of this writing which puts the stock close to overbought territory in mid-April. Income and value investors may want to wait for a pullback before stacking the dividend king today.
