I first bought this stock (TSX-BIN) in November 2007. My total return to date is -2.3% per year. This company did not have a good year in 2009. It is not surprising, as a lot of companies did not have a good year in 2009. My negative return is also not surprising, as most stocks bought in the last 5 years would not show much in the total return category. This stock was a Unit Trust (BFC.UN) when I bought it in 2007. In October 2008, it changed to a corporation (BFC). The company was restructured in 2009 and it changed its symbol to BIN.
When this stock changed to a corporation, it decreased its dividends. The dividend payments have decreased by just under 73%. The company gave out some special dividends in 2009 to help with the transition to a corporation. So previously yields on this company was in the 6% range and are now just over 2%. Prior to the change to a corporation, this company had a habit of increasing their dividends each year. So far, the dividend set in 2009 has not been increased. They do not expect to increase their dividends in 2010.
The payout ratio of dividends to cash flow has been coming down. It was 45% in 2008 and 30% in 2009. It is expected to be 20% in 2010. A payout ratio of 20% is a sustainable one for a corporation and is a good rate. I am hoping that once they hit the 20% payout ratio, that they will again consider dividend increases.
Some of the 10 year growth figures are fine; almost none of the 5 year growth figures are good. The best growth figures are for revenues and revenues per share has grown just over 11% per year for both the last 5 and 10 years. For earnings, the 5 and 10 year growth figures are -3% and 9.7% per year, respectively. Earnings for this company came down some 22% between 2008 and 2009.
One good thing to note on this company, if you had held it for 10 years, you would have made a total return from about 15% to 18%. The 15% is based on average price buy and sell. The 18% is based on a year end buy and sell. Basically, what you can hope for in stocks is that you buy and sell them at, at least an average price.
They are a full-service waste management company providing non-hazardous solid waste collection and landfill disposal services for municipal, commercial, industrial and residential customers in five provinces and ten US states. Two-thirds of their business is in US. The fund operates through its subsidiaries. Its web site is here IESI-BFC. See my spreadsheet at bin.htm
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
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