Our analysis is based on comparing Nordson Corp. with the following peers – Illinois Tool Works Inc., Dover Corporation, Taylor Devices, Inc., Graco Inc. and Astec Industries, Inc. (ITW-US, DOV-US, TAYD-US, GGG-US and ASTE-US).
Nordson Corp.’s dividend yield is 0.80 percent and its dividend payout is 21.85 percent. This compares to a peer average dividend yield of 1.07 percent and a payout level of 41.65 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 Quality Overview
- Over the last twelve months (prior to October 31, 2017), NDSN-US paid a medium quality dividend, which represents a yield of 0.78% 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 medium quality.
- The ending cash balance, with a dividend coverage of 1.42x, 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 October 31, 2017), NDSN-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 5.48x), investing cash flow (coverage of -13.75x), issuance cash flow (coverage of 9.58x) and twelve-month prior cash (coverage of 1.05x), for a total dividend coverage of 2.42x.
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 Yield (%)||0.87||1.01||1.34||0.98||0.87||0.8|
|Dividend Payout (%)||18.42||19.79||26.09||20.93||21.85||21.85|
A complete list of metrics and analysis is available on the company page.
Nordson Corp. engages in the engineering, manufacture, and market of products and systems used for adhesives, coatings, sealants, biomaterials, and other materials. It operates through the following business segments: Adhesive Dispensing Systems; Advanced Technology Systems; Industrial Coating Systems; and Corporate. The Adhesive Dispensing Systems segment delivers its dispensing and processing technology to diverse markets for applications. The Advanced Technology Systems segment offers electronic systems, fluid management, and test and inspection services. The Industrial Coating Systems segment provides standard and highly-customized equipment used primarily for applying coatings, paint, finishes, sealants, and other material. The Corporate segment comprises of corporate assets. The company was founded by Eric T. Nord, Evan W. Nord, and Walter G. Nord in 1954 and is headquartered in Westlake, OH.
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