Our analysis is based on comparing Raven Industries, Inc. with the following peers – Tredegar Corporation, Carlisle Companies Incorporated, Otter Tail Corporation, United Technologies Corporation, Textron Inc., Trimble Inc., Fuwei Films (Holdings) Co., Ltd. and Handy & Harman Ltd. (TG-US, CSL-US, OTTR-US, UTX-US, TXT-US, TRMB-US, FFHL-US and HNH-US).
Raven Industries, Inc.’s dividend yield is 1.67 percent and its dividend payout is 108.33 percent. This compares to a peer median dividend yield of 1.48 percent and a payout level of 38.48 percent. This type of dividend performance might make it a good stock for dividend investors. In addition, the company’s relatively good dividend quality score of 67 out of a possible score of 100 points to some sustainability of its robust payout ratio, and underscores its attractiveness for dividend investors seeking current income.
Dividend Quality Overview
- Over the last twelve months (prior to October 31, 2016), RAVN-US paid a high quality dividend, which represents a yield of 1.67% 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 2.45x, 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, 2016), RAVN-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 2.51x), investing cash flow (coverage of -0.31x), issuance cash flow (coverage of -0.44x) and twelve-month prior cash (coverage of 1.72x), for a total dividend coverage of 3.45x.
RAVN-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -0.42x). Thus, the total coverage including share buybacks is 3.86x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
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 (%)||1.11||1.56||1.28||2.27||3.55||1.67|
|Dividend Payout (%)||25.99||29.17||41.03||58.14||400||108.33|
A complete list of metrics and analysis is available on the company page.
Raven Industries, Inc. engages in the industrial, agricultural, energy, construction, military and aerospace service provision market. It operates its business through three reportable segments: Applied Technology, Engineered Films and Aerostar. The Applied Technology segment designs, manufactures, sells, and services precision agriculture products and information management tools, which help growers to improve farm yields. Its products include field computers, application controls, GPS-guidance and assisted-steering systems, automatic boom controls, yield monitoring planter controls and information platform called Slingshot. The Engineered Films segment produces rugged reinforced plastic sheeting for industrial, energy, construction, geomembrane and agricultural applications. The Aerostar segment sells high-altitude and tethered aerostats such as parachutes for government and commercial research. The company was founded by J.R. Smith, Paul Edward Yost, Duwayne Thon and Joseph Kaliszewski in February 1956 and is headquartered in Sioux Falls, SD.
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