Issue 29 – A Small Cap With a 7% Dividend and Much More
Pivot Technology Solutions Inc. (TSX: PTG) is a small cap dividend payer that is more than just a cash cow. The company has been paying dividends, reducing debt and buying back stock. Not many investors have heard of this company as its market cap is under $100 million. However, this company is expected to generate $1.5 billion USD in revenue and $32M in EBITDA for 2017. The EBITDA margins are currently at 2%, but are expected to expand in the coming years as the company focuses on its managed services. We are expecting managed services to grow from 10% of revenue to 30% in the coming years. Presently, most of the company’s revenue comes from the value-added reseller (VAR) segment. Its VAR business is underpinned by very strong customers, of which approximately 70% are fortune 100 enterprises.