The Eastern Co. : EML-US: Dividend Analysis : November 16th, 2016 (record date) : By the numbers : January 13, 2017

Our analysis is based on comparing The Eastern Co. with the following peers – CompX International Inc. Class A, Steel Partners Holdings L.P., P&F Industries, Inc. Class A, Mueller Industries, Inc., NL Industries Inc, Stanley Black & Decker, Inc., Haga SA Industria e Comercio Pfd and NN, Inc. (CIX-US, SPLP-US, PFIN-US, MLI-US, NL-US, SWK-US, HAGA4-BR and NNBR-US).

The Eastern Co.’s dividend yield is 2.11 percent and its dividend payout is 40.37 percent. This compares to a peer median dividend yield of 1.50 percent and a payout level of 0 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 83 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 September 30, 2016), EML-US paid a high quality dividend, which represents a yield of 2.11% 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 7.87x, 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 September 30, 2016), EML-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 5.26x), investing cash flow (coverage of -0.83x), issuance cash flow (coverage of -0.39x) and twelve-month prior cash (coverage of 4.95x), for a total dividend coverage of 8.87x.

EML-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -0.39x).

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 2011-12-31 2012-12-31 2013-12-31 2014-12-31 2015-12-31 Latest
Dividend Yield (%) 1.79 3.12 2.61 2.59 2.39 2.11
Dividend Payout (%) 40.45 28.99 37.84 35.77 47.83 40.37

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

Company Profile

The Eastern Co. engages in the manufacture and sale of industrial hardware, security products, and metal products. It operates through the following segments: Industrial Hardware, Security Products and Metal products. The Industrial Hardware segment offers locks, latches, hinges, handles, lightweight honeycomb that are found on automotive industries as well as to the industrial equipment, military and marine sectors. The Security Products segment manufactures electronic and mechanical locking devices, both keyed and keyless, for the computer, electronics, vending and gaming industries. The Metal Products segment includes mine roof support anchors, couplers for railroad braking systems, adjustable clamps for construction and fittings for electrical installations. the company was founded by Eben Tuttle in 1858 and is headquartered in Naugatuck, CT.

Disclaimer

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