Providence & Worcester Railroad Co. : PWX-US: Dividend Analysis : August 10th, 2016 (record date) : By the numbers : October 17, 2016

Our analysis is based on comparing Providence & Worcester Railroad Co. with the following peers – Norfolk Southern Corporation, Genesee & Wyoming, Inc. Class A, Canadian National Railway Company, CSX Corporation, Canadian Pacific Railway Limited, Kansas City Southern, Union Pacific Corporation and Pioneer Railcorp (NSC-US, GWR-US, CNI-US, CSX-US, CP-US, KSU-US, UNP-US and PRRR-US).

Providence & Worcester Railroad Co.’s dividend yield is 0.64 percent and its dividend payout is 74.38 percent. This compares to a peer average dividend yield of 1.40 percent and a payout level of 30.24 percent. This combination of a relatively lower dividend yield and a higher payout ratio suggest that the dividend payout might not be sustainable. The contra-indicator here is the relatively strong dividend quality score of 67 out of a possible score of 100, which points to some ability to sustain the higher payout ratio.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to June 30, 2016), PWX-US paid a medium quality dividend, which represents a yield of 0.64% 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, 1 was medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 10.98x, 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 June 30, 2016), PWX-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 4.22x), investing cash flow (coverage of -9.62x), issuance cash flow (coverage of 7.99x) and twelve-month prior cash (coverage of 9.39x), for a total dividend coverage of 11.98x.

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 2011-12-31 2012-12-31 2013-12-31 2014-12-31 2015-12-31 Latest
Dividend Yield (%) 1.4 1.15 0.82 0.87 1.16 0.64
Dividend Payout (%) 84.21 22.22 55.17 25 43.24 74.38

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

Company Profile

Providence & Worcester Railroad Co. operates as interstate freight carrier. It conducts railroad operations in Massachusetts, Rhode Island, Connecticut and New York. The company provides international double-stack intermodal terminal facility in New England, Worcester and Massachusetts. It transports commodities for its customers, including automobiles, construction aggregates, iron and steel products, chemicals and plastics, lumber, scrap metals, plastic resins, cement, coal, construction and demolition debris, processed foods and edible foodstuffs. The company was founded in 1973 and is headquartered in Worcester, MA.


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