Lifetime Brands, Inc. : LCUT-US: Dividend Analysis : February 01st, 2017 (record date) : By the numbers : March 20, 2017

Our analysis is based on comparing Lifetime Brands, Inc. with the following peers – Libbey Inc., Helen of Troy Limited, Tupperware Brands Corporation, Servotronics, Inc. and Ralph Lauren Corporation Class A (LBY-US, HELE-US, TUP-US, SVT-US and RL-US).

Lifetime Brands, Inc.’s dividend yield is 0.87 percent and its dividend payout is 15.74 percent. This compares to a peer average dividend yield of 1.89 percent and a payout level of 61.68 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 December 31, 2016), LCUT-US paid a medium quality dividend, which represents a yield of 0.87% 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, 2 were medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 3.27x, 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 December 31, 2016), LCUT-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 12.33x), investing cash flow (coverage of -10.13x), issuance cash flow (coverage of -0.73x) and twelve-month prior cash (coverage of 2.96x), for a total dividend coverage of 4.27x.

LCUT-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -1.73x).

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 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 0.92 0.75 0.86 1.16 0.93 0.87
Dividend Payout (%) 6.1 18.49 136.36 18.6 15.74 15.74

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

Company Profile

Lifetime Brands, Inc. designs, sources and sells branded kitchenware, tableware and other products used in the home and market its products under a number of brand names and trademarks, which are either owned or licensed by the company or through retailer’s private labels. It markets and sells its products principally on a wholesale basis to retailers. The company operates through The U.S. Wholesale, International, and Retail Direct segments. The U.S. Wholesale segment includes the domestic operations of the Company’s primary business that designs, markets and distributes its products to retailers and distributors. The International segment includes certain business operations conducted outside the United States. The Retail Direct segment markets and sells a limited selection of its products. Lifetime Brands was founded in 1945 and is headquartered in Garden City, NY.

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