Bassett Furniture Industries, Inc. : BSET-US: Dividend Analysis : August 11th, 2017 (record date) : By the numbers : September 12, 2017

Our analysis is based on comparing Bassett Furniture Industries, Inc. with the following peers – LaZBoy Incorporated, Ethan Allen Interiors Inc., Flexsteel Industries, Inc., Stanley Furniture Company, Inc. and Hooker Furniture Corporation (LZB-US, ETH-US, FLXS-US, STLY-US and HOFT-US).

Bassett Furniture Industries, Inc.’s dividend yield is 1.95 percent and its dividend payout is 24.10 percent. This compares to a peer median dividend yield of 1.87 percent and a payout level of 25.29 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking seeking good current dividend income within this peer group. In addition, the company’s relatively good dividend quality score of 83 out of a possible score of 100, underscores its attractiveness for dividend investors.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to May 31, 2017), BSET-US paid a high quality dividend, which represents a yield of 1.10% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 3 were high quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 7.03x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to May 31, 2017), BSET-US paid a high quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 4.99x), investing cash flow (coverage of -1.76x), issuance cash flow (coverage of -2.22x) and twelve-month prior cash (coverage of 7.02x), for a total dividend coverage of 8.03x.

BSET-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -1.57x) and net share buybacks (coverage of -0.57x). Thus, the total coverage including share buybacks is 8.60x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.

Dividend History

Item 2012-11-30 2013-11-30 2014-11-30 2015-11-30 2016-11-30 Latest
Dividend Yield (%) 17.59 1.71 2.51 1.67 1.99 1.95
Dividend Payout (%) 60.17 46.81 32.18 18.09 26.03 24.1

A complete list of metrics and analysis is available on the company page.

Company Profile

Bassett Furniture Industries, Inc. engages in the manufacture and sale of home furnishings. It operates through the following segments: Wholesale, Retail, and Logistical Services. The Wholesale segment focuses on the design, manufacture, sourcing, sale, and distribution of furniture products. The Retail segment consists of company owned stores. The Logistical Services segment offers shipping, delivery, and warehousing services. The company was founded by John David Bassett, Sr. in 1902 and is headquartered in Bassett, VA.


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