Niche High-Dividend Stock Yields 8%, Pays Monthly In U.S. Dollars, Reports Record Revenue And EBITDA

Remember the good old days of your youth, when you took the bus back and forth to school? "We had to wait in all kinds of weather, not like these spoiled kids today, whose moms schlep them back and forth in the latest fancy SUVs. Get off of my lawn you kids, and NO, you can't have your @#$% soccer ball back!" (OK, mean old Mr. Wilson from Dennis the Menace, that's enough out of you...) This niche industry stock yields 7.87% with a conservative 40% dividend payout ratio. Its contracts average three to eight years, with a 95% renewal rate. It reported record revenues and EBITDA in its most recent quarter.Analysts are forecasting consensus EPS growth of 16.7% for fiscal 2017 and 71% EPS growth for fiscal 2018.

Student Transportation (NASDAQ:STB) is in a unique position and represents a pure play - it's the only publicly traded school bus stock in the US market. It's based in Canada, but it pays its monthly dividends in US dollars since 90% of its revenues come from its US operations. Founded in 1997, Student Transportation Inc. is North America's largest independent provider of student transportation solutions, operating more than 13,000 vehicles. STB focuses on rural and suburban areas, and has over 300 contracts that average 3-8 years, renewable.

Source: Seeking Alpha

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