Big Lots, Inc. : BIG-US: Dividend Analysis : June 09th, 2017 (record date) : By the numbers : June 8, 2017

Our analysis is based on comparing Big Lots, Inc. with the following peers – Dollar General Corporation, Dollar Tree, Inc., Fred’s, Inc. Class A, Target Corporation, Costco Wholesale Corporation and Five Below, Inc. (DG-US, DLTR-US, FRED-US, TGT-US, COST-US and FIVE-US).

Big Lots, Inc.’s dividend yield is 2.29 percent and its dividend payout is 23.98 percent. This compares to a peer median dividend yield of 2.18 percent and a payout level of 23.39 percent. This type of dividend performance might make it a good stock for dividend investors. In addition, the company’s relatively good dividend quality score of 75 out of a possible score of 100 points to some sustainability of its robust payout ratio, and underscores its attractiveness for dividend investors seeking current income.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to April 30, 2017), BIG-US paid a high quality dividend, which represents a yield of 1.79% at the current price.
  • Dividends were paid for 3 of the last five years — all of them were also of high quality.
  • The ending cash balance, with a dividend coverage of 1.62x, provides a moderate 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 April 30, 2017), BIG-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 7.86x), investing cash flow (coverage of -2.17x), issuance cash flow (coverage of -4.66x) and twelve-month prior cash (coverage of 1.59x), for a total dividend coverage of 2.62x.

BIG-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -1.04x) and net share buybacks (coverage of -3.63x). Thus, the total coverage including share buybacks is 6.25x, 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 2013-01-31 2014-01-31 2015-01-31 2016-01-31 2017-01-31 Latest
Dividend Yield (%) 0 0 1.15 2.02 1.79 2.29
Dividend Payout (%) 0 0 24.76 27.14 25.3 23.98

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

Company Profile

Big Lots, Inc. operates broad line closeout retail stores. It operates under following merchandise categories which include Food, Consumables, Soft Home, Hard Home, Furniture, Seasonal, and Electronics & Accessories. The Food category includes beverage & grocery, candy and snacks, and specialty food departments. The Consumables category comprises health and beauty, plastics, paper, chemical, and pet departments. The Soft Home category includes home décor, frames, fashion bedding, utility bedding, bath, window, decorative textile, and area rugs departments. The Hard Home category consists of small appliances, table top, food preparation, stationery, greeting cards, tools, paint, and home maintenance departments. The Furniture category includes upholstery, mattress, ready-to-assemble, case goods, home decor, and frames departments. The Seasonal category maintains lawn and garden, summer, Christmas, toys, books, sporting goods, and other holiday departments. The Electronics & Accessories category includes the electronics, jewelry, apparel, hosiery, and infant accessories departments. The company was founded by Sol A. Shenk in 1967 and is headquartered in Columbus, OH.

Disclaimer

The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.