Franklin Electric Co., Inc. : FELE-US: Dividend Analysis : August 03rd, 2017 (record date) : By the numbers : August 31, 2017

Our analysis is based on comparing Franklin Electric Co., Inc. with the following peers – A. O. Smith Corporation, Gorman-Rupp Company, Flowserve Corporation, Regal Beloit Corp, Allied Motion Technologies Inc., AMETEK, Inc., Xylem Inc., Colfax Corporation, Dover Corporation and Servotronics, Inc. (AOS-US, GRC-US, FLS-US, RBC-US, AMOT-US, AME-US, XYL-US, CFX-US, DOV-US and SVT-US).

Franklin Electric Co., Inc.’s dividend yield is 1.08 percent and its dividend payout is 22.15 percent. This compares to a peer average dividend yield of 1.23 percent and a payout level of 34.88 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 42 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 June 30, 2017), FELE-US paid a low quality dividend, which represents a yield of 1.06% 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 and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 2.82x, 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 June 30, 2017), FELE-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 3.77x), investing cash flow (coverage of -4.47x), issuance cash flow (coverage of 1.09x) and twelve-month prior cash (coverage of 3.67x), for a total dividend coverage of 3.82x.

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 (%) 0.98 0.7 0.98 1.51 1.06 1.08
Dividend Payout (%) 16.47 18.15 24.65 25.5 24.09 22.15

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

Company Profile

Franklin Electric Co., Inc. engages in the development, manufacture, and distribution of water and fuel pumping systems. It operates through the following business segments: Water Systems, Fueling Systems, and Other. The Water Systems segment designs, manufactures, and sells water pumping systems, submersible motors, pumps, electronic controls, and related parts and equipment. The Fueling Systems segment produces and markets fuel pumping, fuel containment, and monitoring and control systems. It also offers pumps, pipe, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment. The Other segment includes the unallocated corporate expenses and inter-company eliminations. The company was founded by Edward J. Schaefer and T. Wayne Kehoe in 1944 and is headquartered in Fort Wayne, IN.

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