Cogeco Communications (TSX:CCA) is one of the 10 largest cable operators in North America. Its shares have climbed 44% year-over-year as of close on January 24. However, the stock has dipped sharply after the release of its first-quarter fiscal 2020 results.
In the first quarter, Cogeco posted revenue growth of 1.8%, which was only 1.3% growth in constant currency. However, adjusted EBITDA increased 5.3% year-over-year to $282.1 million.
On January 10, Cogeco announced that its U.S. subsidiary Atlantic Broadband had signed a definitive agreement to purchase Thames Valley Communications, a Connecticut-based broadband services company, for $50 million U.S. This will add approximately 10,000 customers to Atlantic Broadband’s operations.
Shares of Cogeco Communications have dropped 7% over the past month at the time of this writing. The stock spent time in technically oversold territory in mid-to-late January but has marginally recovered.
Investors who are on the hunt for a reliable dividend stock right now should consider Cogeco Communications. It also possesses a favourable price-to-earnings ratio of 12 and a price-to-book value of 2.3.
The stock last paid out a quarterly dividend of $0.58 per share, which represents a 2.2% yield. Cogeco Communications has achieved dividend-growth for 15 consecutive years.
Socially-conscious investors may also want to consider Cogeco Communications after it was named as one of the world’s 100 most sustainable corporations by Corporate Knights.
