Our analysis is based on comparing Weis Markets, Inc. with the following peers – Whole Foods Market, Inc., Ingles Markets, Incorporated Class A, Kroger Co., SUPERVALU INC., Village Super Market, Inc. Class A and SpartanNash Company (WFM-US, IMKTA-US, KR-US, SVU-US, VLGEA-US and SPTN-US).
Weis Markets, Inc.’s dividend yield is 1.56 percent and its dividend payout is 37.04 percent. This compares to a peer average dividend yield of 1.57 percent and a payout level of 38.12 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 42 out of a possible score of 100 is only about average.
Dividend Quality Overview
- Over the last twelve months (prior to December 31, 2016), WMK-US paid a low quality dividend, which represents a yield of 2.08% 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 and 3 were low quality.
- The ending cash balance, with a dividend coverage of 2.88x, 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 December 31, 2016), WMK-US paid a low 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 4.70x), investing cash flow (coverage of -5.79x), issuance cash flow (coverage of 2.00x) and twelve-month prior cash (coverage of 3.67x), for a total dividend coverage of 3.88x.
These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.
|Dividend Yield (%)||3.11||2.35||2.54||2.61||1.8||1.56|
|Dividend Payout (%)||39.09||44.94||59.41||54.3||37.04||37.04|
A complete list of metrics and analysis is available on the company page.
Weis Markets, Inc. engages in the ownership and operation of retail food stores. Its retail stores offer groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, fuel, and general merchandise items, such as health and beauty care and household products. The company was founded by Harry Weis and Sigmund Weis in 1912 and is headquartered in Sunbury, PA.
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