Winnebago Industries, Inc. : WGO-US: Dividend Analysis : January 11th, 2017 (record date) : By the numbers : January 10, 2017

Our analysis is based on comparing Winnebago Industries, Inc. with the following peers – Thor Industries, Inc., Brunswick Corporation, Polaris Industries Inc., Spartan Motors, Inc., LCI Industries, Skyline Corporation, Navistar International Corporation and Patrick Industries, Inc. (THO-US, BC-US, PII-US, SPAR-US, LCII-US, SKY-US, NAV-US and PATK-US).

Winnebago Industries, Inc.’s dividend yield is 1.57 percent and its dividend payout is 22.35 percent. This compares to a peer median dividend yield of 1.18 percent and a payout level of 20.49 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 50 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 November 30, 2016), WGO-US paid a low quality dividend, which represents a yield of 1.25% at the current price.
  • Dividends were paid for 2 of the last five years — all of them were also of high quality.
  • The ending cash balance, with a dividend coverage of 2.25x, provides a moderate 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 November 30, 2016), WGO-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 5.35x), investing cash flow (coverage of -36.83x), issuance cash flow (coverage of 29.83x) and twelve-month prior cash (coverage of 4.91x), for a total dividend coverage of 3.25x.

WGO-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -0.32x). Thus, the total coverage including share buybacks is 3.58x, 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 had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.

Dividend History

Item 2012-08-31 2013-08-31 2014-08-31 2015-08-31 2016-08-31 Latest
Dividend Yield (%) 0 0 0 1.77 1.69 1.57
Dividend Payout (%) 0 0 0 23.68 23.81 22.35

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

Company Profile

Winnebago Industries, Inc. engages in the design, development, manufacture, and sale of recreation vehicles used in leisure travel and outdoor recreation activities. It builds motorhomes, travel trailers, fifth wheel products, and transit buses. The company was founded on February 12, 1958 and is headquartered in Forest City, IA.


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