CTS Corp. : CTS-US: Dividend Analysis : June 23rd, 2017 (record date) : By the numbers : June 21, 2017

Our analysis is based on comparing CTS Corp. with the following peers – Sanmina-SCI Corporation, Jabil Inc, AVX Corporation, Plexus Corp., Vishay Intertechnology, Inc., Benchmark Electronics, Inc., Celestica Inc., Littelfuse, Inc., Vishay Precision Group, Inc. and Actuant Corporation Class A (SANM-US, JBL-US, AVX-US, PLXS-US, VSH-US, BHE-US, CLS-US, LFUS-US, VPG-US and ATU-US).

CTS Corp.’s dividend yield is 0.75 percent and its dividend payout is 15.24 percent. This compares to a peer average dividend yield of 0.97 percent and a payout level of 23.57 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 58 out of a possible score of 100 is only about average.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to March 31, 2017), CTS-US paid a low quality dividend, which represents a yield of 0.75% 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 3 were high quality, 1 was medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 23.24x, 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 March 31, 2017), CTS-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 10.80x), investing cash flow (coverage of -1.79x), issuance cash flow (coverage of -9.80x) and twelve-month prior cash (coverage of 24.99x), for a total dividend coverage of 24.24x.

CTS-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -9.02x).

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 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 1.34 0.73 0.9 0.92 0.71 0.75
Dividend Payout (%) 23.73 407.3 20.51 76.19 15.53 15.24

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

Company Profile

CTS Corp is a designer and manufacturer of electronic components, actuators and sensors and a provider of services to OEMs in the automotive, communications, medical, defense and aerospace, industrial and computer markets. CTS manufacture products in North America, Europe and Asia. CTS was founded in 1896 and is headquartered in Elkhart, IN.


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