Ritchie Bros. Auctioneers, Inc. : RBA-US: Dividend Analysis : May 23rd, 2017 (record date) : By the numbers : June 21, 2017

Our analysis is based on comparing Ritchie Bros. Auctioneers, Inc. with the following peers – Euro Tech Holdings Co. Ltd., MSC Industrial Direct Co., Inc. Class A, eBay Inc., Applied Industrial Technologies, Inc., DXP Enterprises, Inc., Netflix, Inc., Amazon.com, Inc., YOOX Net APorter S.p.A. Unsponsored ADR and uSell.com (CLWT-US, MSM-US, EBAY-US, AIT-US, DXPE-US, NFLX-US, AMZN-US, YXOXY-US and USEL-US).

Ritchie Bros. Auctioneers, Inc.’s dividend yield is 2.36 percent and its dividend payout is 99.25 percent. This compares to a peer median dividend yield of 0.96 percent and a payout level of 20.96 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 75 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 Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to March 31, 2017), RBA-US paid a medium quality dividend, which represents a yield of 2.34% 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 medium quality.
  • The ending cash balance, with a dividend coverage of 5.28x, 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 March 31, 2017), RBA-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 2.05x), investing cash flow (coverage of -1.25x), issuance cash flow (coverage of 6.80x) and twelve-month prior cash (coverage of 5.81x), for a total dividend coverage of 6.28x.

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 (%) 2.25 2.2 2 2.5 1.94 2.36
Dividend Payout (%) 63.45 57.14 63.59 47.87 78.63 99.25

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

Company Profile

Ritchie Bros. Auctioneers, Inc. is an industrial auctioneer, selling equipment to on-site and online bidders. It offers convenient services to make buying and selling equipment easier, including financing, shipping, refurbishing, powertrain service warranties and insurance. The company also offers services that enable the world’s builders to easily exchange equipment. It sells a broad range of used and unused equipment for the construction, transportation, agricultural, material handling, mining, forestry, petroleum, marine and other industries. Ritchie Bros. Auctioneers was founded by David Edward Ritchie in 1958 and is headquartered in Burnaby, Canada.


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