Our analysis is based on comparing Black Box Corp. with the following peers – Datalink Corporation, Polycom, Inc., CommScope Holding Co., Inc., Cisco Systems, Inc., F5 Networks, Inc., Digi International Inc., ShoreTel, Inc., Orange SA Sponsored ADR, Jack Henry & Associates, Inc. and General Electric Company (DTLK-US, PLCM-US, COMM-US, CSCO-US, FFIV-US, DGII-US, SHOR-US, ORAN-US, JKHY-US and GE-US).
Black Box Corp.’s dividend yield is 3.53 percent and its dividend payout is -3.94 percent. This compares to a peer median dividend yield of 2.93 percent and a payout level of 18.33 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 100 out of a possible score of 100, underscores its attractiveness for dividend investors.
Dividend Quality Overview
- Over the last twelve months (prior to March 31, 2016), BBOX-US paid a high quality dividend, which represents a yield of 3.46% at the current price.
- Dividends paid during each of the last five years were consistently of high quality.
- The ending cash balance, with a dividend coverage of 3.55x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to March 31, 2016), BBOX-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 5.62x), investing cash flow (coverage of -1.68x), issuance cash flow (coverage of -3.18x) and twelve-month prior cash (coverage of 3.56x), for a total dividend coverage of 4.55x.
BBOX-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -2.07x) and net share buybacks (coverage of -1.08x). Thus, the total coverage including share buybacks is 5.63x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
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 Yield (%)||1.08||1.48||1.47||1.88||3.27||3.53|
|Dividend Payout (%)||-2||18.5||-4.91||40.4||-3.94||-3.94|
A complete list of metrics and analysis is available on the company page.
Black Box Corp. engages in the provision of technology solutions. It supports its customers to design, build, manage, and secure their information technology (IT)infrastructure. The firm offers its products under Products and Services Platforms. The Products platform includes IT infrastructure, specialty networking, multimedia and keyboard/video/mouse switching. The Services platform includes unified communications, data infrastructure and managed services. It operates its business through the following segments: North America Products, North America Services, International Products, and International Services. The company was founded in 1976 and is headquartered in Lawrence, PA.
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