Our analysis is based on comparing CSS Industries, Inc. with the following peers – Deluxe Corporation, ACCO Brands Corporation, CTI Industries Corporation, Wal-Mart Stores, Inc., 3M Company and Shutterfly, Inc. (DLX-US, ACCO-US, CTIB-US, WMT-US, MMM-US and SFLY-US).
CSS Industries, Inc.’s dividend yield is 2.94 percent and its dividend payout is 35.24 percent. This compares to a peer median dividend yield of 2.01 percent and a payout level of 43.52 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking for good current dividend income within this peer group. On the contrary, the company’s average dividend quality score of 58 out of a possible score of 100, lessens its attractiveness for dividend investors.
Dividend Quality Overview
- Over the last twelve months (prior to September 30, 2017), CSS-US paid a low quality dividend, which represents a yield of 2.94% 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 and 3 were low quality.
- The ending cash balance, with a dividend coverage of 3.74x, 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 September 30, 2017), CSS-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 3.12x), investing cash flow (coverage of -2.57x), issuance cash flow (coverage of 0.00x) and twelve-month prior cash (coverage of 4.15x), for a total dividend coverage of 4.74x.
CSS-US’s issuance cash flow includes outflows from net debt repayment (coverage of -0.01x).
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 Yield (%)||2.33||2.25||2.09||2.68||3.09||2.94|
|Dividend Payout (%)||37.74||30.15||35||39.57||25.56||35.24|
A complete list of metrics and analysis is available on the company page.
CSS Industries, Inc. engages in the design, manufacture, procurement, and sale of seasonal and all occasion social expression products, principally to mass market retailers in the United States and Canada. Its seasonal and occasion products include decorative ribbons and bows, boxed greeting cards, gift tags, gift wrap, gift bags, gift boxes, gift card holders, decorative tissue paper, decorations, classroom exchange valentines, decorative ribbons and bows, floral accessories, halloween masks, costumes, make-up and novelties, easter egg dyes and novelties, craft and educational products, stickers, memory books, stationery, journals, note cards, infant and wedding photo albums, scrapbooks and gift items. The company was founded in 1923 and is headquartered in Philadelphia, PA.
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