Our analysis is based on comparing Husqvarna AB with the following peers – Stanley Black & Decker, Inc., Deere & Company, Toro Company, Briggs & Stratton Corporation, Douglas Dynamics, Inc. and Techtronic Industries Co., Ltd. Sponsored ADR (SWK-US, DE-US, TTC-US, BGG-US, PLOW-US and TTNDY-US).
Dividend Quality Overview
- Over the last twelve months (prior to December 31, 2016), HSQVY-US paid a high quality dividend, which represents a yield of 1.84% 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 4 were high quality and 1 was low quality.
- The ending cash balance, with a dividend coverage of 2.29x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to December 31, 2016), HSQVY-US paid a high 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 -1.94x), issuance cash flow (coverage of -0.61x) and twelve-month prior cash (coverage of 2.12x), for a total dividend coverage of 3.29x.
HSQVY-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.36x).
These coverage ratio factors imply that the firm’s dividends are wholly paid from operating and investing cash flows net of any debt repayments, which suggests a high dividend quality.
|Dividend Yield (%)||4.77||4.9||3.75||3.66||3.08||1.84|
|Dividend Payout (%)||56.85||73.41||20.84||36.59||39.06||39.06|
A complete list of metrics and analysis is available on the company page.
Husqvarna AB engages in the production of outdoor power products for forest, park, and garden care. It also offers garden watering products; and cutting equipment and diamond tools for the construction and stone industries. It operates through the following segments: Husqvarna, Gardena, Consumer Brands, and Construction. The Husqvarna segment includes the sale of outdoor products including chainsaws, trimmers, and mowers for forest, park, and garden care. The Gardena segment comprises the sale of garden watering and hand tools. The Consumer Brands segment focuses on the forest and garden areas through product offering under the brands of PoulanPro, McCulloch, Flymo, and WeedEater. The Construction segment deals with the professional equipment and diamond tools for cutting and drilling in concrete, stone, masonry, tile, and asphalt. The company was founded in 1689 and is headquartered in Stockholm, Sweden.
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