Compass Minerals International, Inc. : CMP-US: Dividend Analysis : December 01st, 2016 (record date) : By the numbers : January 26, 2017

Our analysis is based on comparing Compass Minerals International, Inc. with the following peers – Intrepid Potash, Inc., Potash Corporation of Saskatchewan Inc., Arab Potash Sponsored GDR RegS, Ciner Resources LP and K+S AG Sponsored ADR (IPI-US, POT-US, ABPZF-US, CINR-US and KPLUY-US).

Compass Minerals International, Inc.’s dividend yield is 3.37 percent and its dividend payout is 75.36 percent. This compares to a peer average dividend yield of 3.49 percent and a payout level of 86.78 percent. This relatively lagging dividend performance could spur some dividend action going forward – as long as the company’s relatively strong dividend quality score of 67 out of a possible score of 100 looks sustainable.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2016), CMP-US paid a medium quality dividend, which represents a yield of 3.32% 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 2 were high quality, 1 was medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 4.65x, 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 September 30, 2016), CMP-US paid a medium 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 1.61x), investing cash flow (coverage of -3.62x), issuance cash flow (coverage of 6.35x) and twelve-month prior cash (coverage of 1.28x), for a total dividend coverage of 5.65x.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.

Dividend History

Item 2011-12-31 2012-12-31 2013-12-31 2014-12-31 2015-12-31 Latest
Dividend Yield (%) 2.64 2.67 2.73 2.77 3.52 3.37
Dividend Payout (%) 40.45 74.72 56.19 37.27 56.22 75.36

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

Company Profile

Compass Minerals International, Inc. engages in the business of producing and marketing minerals, including salt, sulfate of potash specialty fertilizer and magnesium chloride. It operates through the Salt and Plant Nutrition segments. The Salt segment produces salt and magnesium chloride for use in road deicing and dust control, food processing, water softeners, pool salt and agricultural and industrial applications. The Plant nutrition segment produces and markets sulfate of potash crop nutrients, industrial grade sulfate of potash and magnesium chloride for agricultural purposes. The company was founded in 1993 and is headquartered in Overland Park, KS.

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