Britvic Plc : BTVCY-US: Dividend Analysis : December 11th, 2017 (record date) : By the numbers : December 11, 2017

Our analysis is based on comparing Britvic Plc with the following peers – Dr Pepper Snapple Group, Inc., Cott Corporation, Coca-Cola Company, National Beverage Corp., Coca-Cola Bottling Co. Consolidated, PepsiCo, Inc., A.G. BARR p.l.c. Unsponsored ADR, Reed’s, Inc., Monster Beverage Corporation and Organizacion Cultiba SAB de CV Class B (DPS-US, COT-US, KO-US, FIZZ-US, COKE-US, PEP-US, AGBAY-US, REED-US, MNST-US and CULTIBAB-MX).

Britvic Plc’s dividend yield is 5.06 percent and its dividend payout is 62.45 percent. This compares to a peer median dividend yield of 1.93 percent and a payout level of 40.21 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 42 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • 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 1.63x, 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 September 30, 2017), BTVCY-US paid a low 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 2.74x), investing cash flow (coverage of -2.92x), issuance cash flow (coverage of -0.69x) and twelve-month prior cash (coverage of 4.53x), for a total dividend coverage of 2.63x.

BTVCY-US’s issuance cash flow includes outflows from net debt repayment (coverage of -0.62x) and net share buybacks (coverage of -0.07x). Thus, the total coverage including share buybacks is 2.70x, 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 had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.

Dividend History

Item 2013-09-30 2014-09-30 2015-09-30 2016-09-30 2017-09-30 Latest
Dividend Yield (%) 2.92 2.88 3.06 4.19 3.08 5.06
Dividend Payout (%) 68.66 52.17 50.96 53.19 58.15 57.68

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

Company Profile

Britvic Plc engages in the manufacture and distribution of soft drinks. It operates its business through the following segments: GB Stills, GB Carbonates, Ireland, France, and International. Its products includes sparkling sodas, sophisticated juice drinks, ice tea, squash, syrups, mineral waters, mixers, and energy drinks. The firm’ brands include 7Up; Ballygowan; Britvic Mixers, Juices and Cordials, Britvic; C&C; Club Mixers; Club Orange; DaFruta; Drench; Energise Sport; Fruit Shoot; Gatorade; J2O; Lipton; Maguary; MiWadi; Mountain Dew; Pepsi Max; Purdey’s; R Whites; Robinsons; Squash’d; Tango; Tesseire; and TK. The company was founded in 1938 and is headquartered in Hemel Hempstead, the United Kingdom.


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