Saputo, Inc. : SAPIF-US: Dividend Analysis : September 05th, 2017 (record date) : By the numbers : September 25, 2017

Our analysis is based on comparing Saputo, Inc. with the following peers – Dean Foods Company, Glanbia Plc Sponsored ADR, China Mengniu Dairy Co., Ltd. Unsponsored ADR and Lifeway Foods, Inc. (DF-US, GLAPY-US, CIADY-US and LWAY-US).

Saputo, Inc.’s dividend yield is 1.31 percent and its dividend payout is 31.50 percent. This compares to a peer median dividend yield of 1.03 percent and a payout level of 24.16 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 58 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to June 30, 2017), SAPIF-US paid a high quality dividend, which represents a yield of 1.27% 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 is less than the last full year dividend payment and cannot be relied on to cushion any 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, 2017), SAPIF-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 3.61x), investing cash flow (coverage of -1.73x), issuance cash flow (coverage of -2.00x) and twelve-month prior cash (coverage of 1.69x), for a total dividend coverage of 1.58x.

SAPIF-US’s issuance cash flow includes outflows from net debt repayment (coverage of -0.43x) and net share buybacks (coverage of -1.58x). Thus, the total coverage including share buybacks is 3.16x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

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 History

Item 2013-03-31 2014-03-31 2015-03-31 2016-03-31 2017-03-31 Latest
Dividend Yield (%) 1.62 1.69 1.61 1.27 1.31 1.31
Dividend Payout (%) 34.02 33.33 33.01 35.43 31.79 31.5

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

Company Profile

Saputo, Inc. engages in the manufacture, market, and trade of dairy products. It operates through the following market segments: Retail, Foodservice, and Industrial. It offers cheese, milk, cream, yogurt, butter, milk powder, and dairy ingredients. The company was founded by Emanuele Saputo Sr. in September 1954 and is headquartered in Saint-Léonard, Canada.


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