OfficeMax Archives - The Dividend Ninja

The Dividend Growth Index – August 2012 Update

Update: For the Dividend Growth Index – sold position in Staples Inc. (SPLS) on missed earnings and low margins, and purchased a position in Johnson & Johnson (JNJ). The Office Sector Slump While stock markets are on a tear since their declines in May this year, the office supplies retail sector has not been doing so well. Sales, profits and revenues have been declining , leaving the office supply retail sector in a bind. Take the smaller player in the industry Office Depot (ODP), with a 450 million market cap, which last June closed all its Canadian retail locations. Office …

Staples Inc. Value in Office Supplies?

by Dividend Ninja

Last Wednesday, Staples Inc. (SPLS-Q) reported lower-than-expected quarterly results on higher costs and weak demand for office supplies. Shares plummeted from the previous day close of $19.65 to $16.63, a decline of 15.4%. Since Wednesday, shares have already climbed over the $17.00 level. Staples is not an unprofitable business, far from it. According to a recent Globe and Mail article, Staples profit rose to $198.2-million, or 28 cents a share, in the first quarter. However, analysts on average were expecting 32 cents a share. With big blue chip dividend payers and dividend aristocrats hitting their 52 week highs, there haven’t …