Business Overview and Highlights

Graco (NYSE: GGG) is an American manufacturer of fluid-handling systems and products. The $8.3 billion business is based out of Minnesota and it employs 3,700 people. Last year Graco pulled in $1.7 billion in sales and that works out to $447,000 per employee.

On June 14, 2019, Graco’s board of directors declared a regular quarterly dividend of $0.16 per share. The dividend is payable on August 7 to shareholders of record at the close of business on July 22.

10-Year Dividend History

The company paid investors $0.26 per share a decade ago. Over the last 10 years, the dividend has climbed to $0.56. That’s a 118% increase and you can see the annual changes below…

The compound annual growth is 8.1% over 10 years… but over the last year, the dividend climbed 14.3%. The increase in dividend growth is a good sign. Graco might work out as a great income investment. Let’s take a look at the yield…

Current Yield vs. 10-Year Average

Graco’s long history of paying dividends makes it one of the best dividend stocks around. This also makes the dividend yield a great indicator of value. A higher yield is generally better for buyers. Sustainability is also vital and we’ll look at that soon.

The dividend yield comes in at 1.28% and that’s below the 10-year average of 1.9%. The chart below shows the dividend yield over the last 10 years…

The lower yield shows that investors have bid up the company’s market value. They might be expecting higher growth and payouts. But more often than not, the dividend yield is mean reverting with share price changes.

Improved Dividend Safety Check

Many investors look at the payout ratio to determine dividend safety. They look at the dividend per share divided by the net income per share. So, a payout ratio of 60% would mean that every $1 Graco earns, it pays investors $0.60.

The payout ratio is a good indicator of dividend safety… but accountants manipulate net income. They adjust for goodwill and other non-cash items. A better metric is free cash flow.

Here’s Graco’s payout ratio based on free cash flow over the last 10 years…

The ratio is volatile over the last 10 years and the trend is down. The last year shows a payout ratio of 29.8%. This gives wiggle room for Graco’s board of directors to raise the dividend.

If you’re interested in seeing more dividend research, please comment below. You can also check out our free DRIP calculator. With it, you can uncover the power of dividend reinvestment growth.

Also, if you are planning your retirement make sure to use our retirement readiness calculator. It will help you find out if you’re on track for a wealthy retirement.

Good investing,

Robert

The post Is Graco’s Dividend Safe? Three Unique Charts… appeared first on Wealthy Retirement.

Business Overview and Highlights

Kimberly-Clark (NYSE: KMB) is a $48 billion business. The multinational personal care company produces mostly paper-based consumer products like facial tissues, toilet paper, cleaning wipes and disposable diapers. The company is based out of Texas and it employs 41,000 people. Last year Kimberly-Clark pulled in $18 billion in sales and that breaks down to $451,000 per employee.

The company runs within the consumer sector and maintains a solid credit rating (A) from the S&P. This allows Kimberly-Clark to issue cheap debt to expand operations and finance other initiatives.

On May 2, 2019, Kimberly-Clark’s board of directors declared a quarterly cash dividend of $1.03 per share. The dividend is payable on July 2 to shareholders of record on June 7. This represents the 47^th consecutive year that Kimberly-Clark has increased its dividend. That makes it a Dividend Aristocrat.

10-Year Dividend History

The company paid investors $2.40 per share a decade ago. Over the last 10 years, the dividend has climbed to $4. That’s a 67% increase and you can see the annual changes below…

The compound annual growth is 5.2% over 10 years… but over the last year, the dividend climbed 3.1%. The slowdown in dividend growth isn’t a great sign. Although, Kimberly-Clark still might be a good income investment. Let’s take a look at the yield…

Current Yield vs. 10-Year Average

Kimberly-Clark’s long history of paying dividends makes it one of the best dividend stocks around. This also makes the dividend yield a great indicator of value. A higher yield is generally better for buyers. Sustainability is also vital and we’ll look at that soon.

The dividend yield comes in at 2.97% and that’s below the 10-year average of 4.27%. The chart below shows the dividend yield over the last 10 years…

The lower yield shows that investors have bid up the company’s market value. They might be expecting higher growth and payouts. But more often than not, the dividend yield is mean reverting with share price changes.

Improved Dividend Safety Check

Many investors look at the payout ratio to determine dividend safety. They look at the dividend per share divided by the net income per share. So, a payout ratio of 60% would mean that every $1 Kimberly-Clark earns, it pays investors $0.60.

The payout ratio is a good indicator of dividend safety… but accountants can manipulate net income. They adjust for goodwill and other non-cash items. A better metric is free cash flow.

Here’s the Kimberly Clark dividend payout ratio based on free cash flow over the last 10 years…

The ratio is volatile over the last 10 years and the trend is up. The payout ratio spiked in 2015, but it dropped to a stable number the next year. The last year shows a payout ratio of 66.5%. This gives wiggle room for Kimberly-Clark’s board of directors to raise the dividend.

If you’re interested in seeing more dividend research, please comment below. You can also check out our free DRIP calculator. With it, you can uncover the power of dividend reinvestment growth.

Also, if you are planning your retirement make sure to use our retirement readiness calculator. It will help you find out if you’re on track for a wealthy retirement.

Good investing,

Robert

The post Kimberly-Clark’s Dividend History and Safety appeared first on Wealthy Retirement.

Business Overview and Highlights

Procter & Gamble (NYSE: PG) is a $286 billion business. The consumer goods corporation is based out of Ohio and it employs 92,000 people. Last year Procter & Gamble pulled in $67 billion in sales and that breaks down to $726,000 per employee.

The company runs within the consumer sector and maintains a solid credit rating (AA-) from the S&P. This allows Procter & Gamble to issue cheap debt to grow the business and finance other initiatives.

On April 29, 2019, Procter & Gamble’s board of directors approved a 4% increase to its quarterly cash dividend, raising the dividend from $0.72 to $0.75 per share. The new dividend was made payable on May 15 to shareholders of record at the close of business on April 19.

10-Year Dividend History

The company paid investors $1.64 per share a decade ago. Over the last 10 years, the dividend has climbed to $2.79. That’s a 70% increase and you can see the annual changes below…

The compound annual growth is 5.5% over 10 years… but over the last year, the dividend climbed 3.3%. The slowdown in dividend growth isn’t a great sign. Although, Procter & Gamble still might be a good income investment. Let’s take a look at the yield…

Current Yield vs. 10-Year Average

Procter & Gamble’s long history of paying dividends makes it one of the best dividend stocks around. This also makes the dividend yield a great indicator of value. A higher yield is generally better for buyers. Sustainability is also vital and we’ll look at that soon.

The dividend yield comes in at 2.62% and that’s below the 10-year average of 3.72%. The chart below shows the dividend yield over the last 10 years…

The lower yield shows that investors have bid up the company’s market value. They might be expecting higher growth and payouts. But more often than not, the dividend yield is mean reverting with share price changes.

Improved Dividend Safety Check

Many investors look at the payout ratio to determine dividend safety. They look at the dividend per share divided by the net income per share. So, a payout ratio of 60% would mean that every $1 Procter & Gamble earns, it pays investors $0.60.

The payout ratio is a good indicator of dividend safety… but accountants can manipulate net income. They adjust for goodwill and other non-cash items. A better metric is free cash flow.

Here’s Procter & Gamble’s payout ratio based on free cash flow over the last 10 years…

The ratio is fairly steady over the last 10 years and the trend is up. The last year shows a payout ratio of 63.3%. This gives wiggle room for Procter & Gamble’s board of directors to raise the dividend.

If you’re interested in seeing more dividend research, please comment below. You can also check out our free DRIP calculator. With it, you can uncover the power of dividend reinvestment growth.

Also, if you are planning your retirement make sure to use our retirement readiness calculator. It will help you find out if you’re on track for a wealthy retirement.

Good investing,

Robert

The post Is Procter & Gamble’s Dividend Safe? Three Unique Charts… appeared first on Wealthy Retirement.

Business Overview and Highlights

Aflac (NYSE: AFL) is a $40 billion insurance provider. The company is based out of Georgia and it employs 11,400 people. Last year Aflac pulled in $22 billion in sales and that works out to $1.9 million per employee.

The company runs within the financial sector and maintains a solid credit rating (A-) from the S&P. This allows Aflac to issue cheap debt to grow the business and pay dividends.

On April 24, 2019, Aflac’s board of directors declared a quarterly cash dividend of $0.27 per share. The dividend was paid on June 3 to shareholders of record at the close of business on May 22.

Aflac’s 10-Year Dividend History

The company paid investors $0.56 per share a decade ago. Over the last 10 years, the dividend has climbed to $1.04. That’s an 86% increase and you can see the annual changes below…

The compound annual growth is 6.4% over 10 years… but over the last year, the dividend climbed 19.5%. The increase in dividend growth is a good sign. Aflac might work out as a great income investment. Let’s take a look at the yield…

Current Yield vs. 10-Year Average

Aflac’s long history of paying dividends makes it one of the best dividend stocks around. This also makes the dividend yield a great indicator of value. A higher yield is generally better for buyers. Sustainability is also vital and we’ll look at that soon.

The dividend yield comes in at 1.99% and that’s below the 10-year average of 2.81%. The chart below shows the dividend yield over the last 10 years…

The lower yield shows that investors have bid up the company’s market value. They might be expecting higher growth and payouts. But more often than not, the dividend yield is mean reverting with share price changes.

Improved Dividend Safety Check

Many investors look at the payout ratio to determine dividend safety. They look at the dividend per share divided by the net income per share. So, a payout ratio of 60% would mean that every $1 Aflac earns, it pays investors $0.60.

The payout ratio is a good indicator of dividend safety… but accountants can manipulate net income. They adjust for goodwill and other non-cash items. A better metric is free cash flow.

Here’s Aflac payout ratio based on free cash flow over the last 10 years…

The ratio is volatile over the last 10 years and the trend is up. The last year shows a payout ratio of 13.3%. This gives plenty of wiggle room for Aflac’s board of directors to raise the dividend.

If you’re interested in seeing more dividend research, please comment below. You can also check out our free DRIP calculator. With it, you can uncover the power of dividend reinvestment growth.

Also, if you are planning your retirement make sure to use our retirement readiness calculator. It will help you find out if you’re on track for a wealthy retirement.

Good investing,

Robert

The post Aflac’s Dividend History and Safety appeared first on Wealthy Retirement.

Business Overview and Highlights

Medtronic (NYSE: MDT) is a $130 billion business, and the world’s largest medical device company. The company is based out of Ireland and it employs 86,000 people. Last year Medtronic pulled in $31 billion in sales and that works out to $348,000 per employee.

The company runs within the consumer sector and maintains a solid credit rating (A) from the S&P. This allows Medtronic to issue cheap debt to grow the business and finance other initiatives.

On June 21, 2019, Medtronic’s board of directors approved an 8% increase to its quarterly cash dividend, raising the dividend from $0.50 to $0.54 per share. The new dividend will be paid on July 25 to shareholders of record at the close of business on July 8.

10-Year Dividend History

The company paid investors $0.82 per share a decade ago. Over the last 10 years, the dividend has climbed to $2.00. That’s a 144% increase and you can see the annual changes below…

The compound annual growth is 9.3% over 10 years… but over the last year, the dividend climbed 8.7%. The slowdown in dividend growth isn’t a great sign. Although, Medtronic still might be a good income investment. Let’s take a look at the yield…

Current Yield vs. 10-Year Average

Medtronic’s long history of paying dividends makes it one of the best dividend stocks around. This also makes the dividend yield a great indicator of value. A higher yield is generally better for buyers. Sustainability is also vital and we’ll look at that soon.

The dividend yield comes in at 2.23% and that’s below the 10-year average of 2.43%. The chart below shows the dividend yield over the last 10 years…

The lower yield shows that investors have bid up the company’s market value. They might be expecting higher growth and payouts. But more often than not, the dividend yield is mean reverting with share price changes.

Improved Dividend Safety Check

Many investors look at the payout ratio to determine dividend safety. They look at the dividend per share divided by the net income per share. So, a payout ratio of 60% would mean that every $1 Medtronic earns, it pays investors $0.60.

The payout ratio is a good indicator of dividend safety… but accountants manipulate net income. They adjust for goodwill and other non-cash items. A better metric is free cash flow.

Here’s Medtronic’s payout ratio based on free cash flow over the last 10 years…

The ratio is volatile over the last 10 years and the trend is up. In 2018 Medtronic’s free cash flow diminished which increased the payout ratio. But this year shows a payout ratio of 45.9%. This gives wiggle room for Medtronic’s board of directors to raise the dividend.

If you’re interested in seeing more dividend research, please comment below. You can also check out our free DRIP calculator. With it, you can uncover the power of dividend reinvestment growth.

Also, if you are planning your retirement make sure to use our retirement readiness calculator. It will help you find out if you’re on track for a wealthy retirement.

Good investing,

Robert

The post Is Medtronic’s Dividend Safe? Three Unique Charts… appeared first on Wealthy Retirement.

Business Overview and Highlights

FactSet (NYSE: FDS) is a $11 billion financial data and software company. The business is based out of Connecticut and it employs 9,600 people. Last year FactSet pulled in $1.4 billion in sales and that works out to $141,000 per employee.

FactSet offers access to data and analytics to analysts, portfolio managers, and investment bankers at global financial institutions. FactSet focuses on technology and client service. The company’s biggest competitors are Bloomberg L.P., Thomson Reuters, and S&P Global.

On May 17, 2019, FactSet’s board of directors approved a 12.5% increase in the regular quarterly cash dividend from $0.64 per share to $0.72. The increased cash dividend will be paid on June 18 to shareholders of record at the close of business on May 31.

The compound annual growth is 12.2% over 10 years… but over the last year, the dividend climbed 13.2%. The increase in dividend growth is a good sign. FactSet might work out as a great income investment. Let’s take a look at the yield…

Current Yield vs. 10-Year Average

FactSet’s long history of paying dividends makes it one of the best dividend stocks around. This also makes the dividend yield a great indicator of value. A higher yield is generally better for buyers. Sustainability is also vital and we’ll look at that soon.

The dividend yield comes in at 0.98% and that’s below the 10-year average of 1.27%. The chart below shows the dividend yield over the last 10 years…

The lower yield shows that investors have bid up the company’s market value. They might be expecting higher growth and payouts. But more often than not, the dividend yield is mean reverting with share price changes.

Improved Dividend Safety Check

Many investors look at the payout ratio to determine dividend safety. They look at the dividend per share divided by the net income per share. So, a payout ratio of 60% would mean that every $1 FactSet earns, it pays investors $0.60.

The payout ratio is a good indicator of dividend safety… but accountants can manipulate net income. They adjust for goodwill and other non-cash items. Free cash flow is a better metric.

Here’s FactSet’s payout ratio based on free cash flow over the last 10 years…

The ratio is fairly steady over the last 10 years and the trend is up. The last year shows a payout ratio of 26.4%. This gives wiggle room for FactSet’s board of directors to raise the dividend.

If you’re interested in seeing more dividend research, please comment below. You can also check out our free DRIP calculator. With it, you can uncover the power of dividend reinvestment growth.

Also, if you are planning your retirement make sure to use our retirement readiness calculator. It will help you find out if you’re on track for a wealthy retirement.

FactSet’s steady dividend creates another opportunity for investors… but will it be a stock you can retire on? Here’s insight into Alexander Green’s Single-Stock Retirement Plan.

Good investing,

Robert

The post Is FactSet Research Systems’ Dividend Safe? Three Unique Charts… appeared first on Wealthy Retirement.

Business Overview and Highlights

Evercore (NYSE: EVR) is a $3.6 billion business. The investment banking advisory firm is based out of New York and it employs 1,700 people. Last year Evercore pulled in $2.1 billion in sales and that works out to $1.2 million per employee.

Evercore’s investment banking business advises its clients on mergers and acquisitions, divestitures, financings, public offerings, and other strategic transactions. The company also does wealth management, institutional asset management, and private equity investing. Notably, Evercore advised Coach on its $2 billion acquisition of Kate Spade New York, Whole Foods on its $14 billion sale to Amazon, and CVS on its acquisition of Aetna. Also, Evercore will be advising Anadarko on its $60 billion sale to Occidental Petroleum this year.

On April 23, 2019, Evercore’s board of directors declared a $0.58 quarterly cash dividend. The dividend is payable June 14 to shareholders of record on May 31.

Evercore’s 10-Year Dividend History

The company paid investors $0.51 per share a decade ago. Over the last 10 years, the dividend has climbed to $1.90. That’s a 273% increase and you can see the annual changes below…

Some of the world’s best investors stick to dividend portfolios. They know that a steady stream of income is a top wealth building strategy. And finding the best deals is vital. So today, we’re going to review another one of the best dividend stocks around. Let’s take a look at Evercore’s dividend history and safety…

The compound annual growth is 14.1% over 10 years… but over the last year, the dividend climbed 33.8%. The increase in dividend growth is a good sign. Evercore might work out as a great income investment. Let’s take a look at the yield…

Current Yield vs. 10-Year Average

Evercore’s long history of paying dividends makes it one of the best dividend stocks around. This also makes the dividend yield a great indicator of value. A higher yield is generally better for buyers. Sustainability is also vital and we’ll look at that soon.

The dividend yield comes in at 2.67% and that’s above the 10-year average of 2.51%. The chart below shows the dividend yield over the last 10 years…

The higher yield shows that investors have bid down the company’s market value. They might be expecting higher growth and payouts. But more often than not, the dividend yield is mean reverting with share price changes.

Improved Dividend Safety Check

Many investors look at the payout ratio to determine dividend safety. They look at the dividend per share divided by the net income per share. So, a payout ratio of 60% would mean that every $1 Evercore earns, it pays investors $0.60.

The payout ratio is a good indicator of dividend safety… but accountants can manipulate net income. They adjust for goodwill and other non-cash items. A better metric is free cash flow.

Here’s Evercore payout ratio based on free cash flow over the last 10 years…

The ratio is volatile over the last 10 years and the trend is down. The last year shows a payout ratio of 9.4%. This gives Evercore’s board of directors plenty of flexibility to raise the dividend. Evercore’s dividend looks like a safe bet for dividend investors.

If you’re interested in seeing more dividend research, please comment below. You can also check out our free DRIP calculator. With it, you can uncover the power of dividend reinvestment growth.

Also, if you are planning your retirement make sure to use our retirement readiness calculator. It will help you find out if you’re on track for a wealthy retirement.

Good investing,

Robert

The post Evercore’s Dividend History and Safety appeared first on Wealthy Retirement.

Business Overview and Highlights

Occidental Petroleum (NYSE: OXY) is a $38 billion hydrocarbon exploration and manufacturing business. The company is based out of Texas and it employs 11,000 people.  Last year Occidental Petroleum pulled in $18 billion in sales and that works out to $1.6 million per employee.

The company runs within the energy sector and maintains a solid credit rating (A-) from the S&P. This allows Occidental Petroleum to issue cheap debt to expand operations and pay dividends.

On May 9, 2019, Occidental Petroleum declared a quarterly cash dividend of $0.78. The dividend is payable July 15 to shareholders of record on June 10.

10-Year Dividend History

The company paid investors $1.31 per share a decade ago. Over the last 10 years, the dividend has climbed to $3.10. That’s a 137% increase and you can see the annual changes below…

The compound annual growth is 9% over 10 years… but over the last year, the dividend climbed 1.3%. The slowdown in dividend growth isn’t a great sign. Although, Occidental Petroleum still might be a good income investment. Let’s take a look at the yield…

Current Yield vs. 10-Year Average

Occidental Petroleum’s long history of paying dividends makes it one of the best dividend stocks around. This also makes the dividend yield a great indicator of value. A higher yield is generally better for buyers. Sustainability is also vital and we’ll look at that soon.

The dividend yield comes in at 6.2% and that’s above the 10-year average of 3.94%. The chart below shows the dividend yield over the last 10 years…

The higher yield shows that investors have bid down the company’s market value. They might be expecting higher growth and payouts. But more often than not, the dividend yield is mean reverting with share price changes.

Improved Dividend Safety Check

Many investors look at the payout ratio to determine dividend safety. They look at the dividend per share divided by the net income per share. So, a payout ratio of 60% would mean that every $1 Occidental Petroleum earns, it pays investors $0.60.

The payout ratio is a good indicator of dividend safety… but accountants can manipulate net income. They adjust for goodwill and other non-cash items. A better metric is free cash flow.

Occidental Petroleum’s payout ratio over the last decade has been steady, but the trend is up. The last year shows a payout ratio of 59%. This gives wiggle room for Occidental Petroleum’s board of directors to raise the dividend.

If you’re interested in seeing more dividend research, please comment below. You can also check out our free DRIP calculator. With it, you can uncover the power of dividend reinvestment growth.

Also, if you are planning your retirement make sure to use our retirement readiness calculator. It will help you find out if you’re on track for a wealthy retirement.

Good investing,

Robert

The post Occidental Petroleum’s Dividend History and Safety appeared first on Wealthy Retirement.

Business Overview and Highlights

Raytheon (NYSE: RTN) is one of the largest defense contractors in the U.S. The $50 billion business manufacturers many types of weapons and commercial electronics. In fact, Raytheon is the world’s largest producer of guided missiles. The company is based out of Massachusetts and it employs 67,000 people. Last year Raytheon pulled in $27 billion in sales and that breaks down to $404,000 per employee.

The company operates within the industrial sector and maintains a solid credit rating (A+) from the S&P. This allows Raytheon to issue cheap debt to expand operations and finance other initiatives.

On June 9, 2019, Raytheon announced a merger of equals with the aerospace companies of United Technologies.

Raytheon’s board of directors announced a quarterly cash dividend of $0.94. The dividend is made payable on August 8 to shareholders of record on July 10.

10-Year Dividend History

The company paid investors $1.24 per share a decade ago. Over the last 10 years, the dividend has climbed to $3.47. That’s a 180% increase and you can see the annual changes below…

The compound annual growth is 10.8% over 10 years… but over the last year, the dividend climbed 8.8%. The slowdown in dividend growth isn’t a great sign. Although, Raytheon still might be a good income investment. Let’s take a look at the yield…

Current Yield vs. 10-Year Average

Raytheon’s long history of paying dividends makes it one of the best dividend stocks around. This also makes the dividend yield a great indicator of value. A higher yield is generally better for buyers. Sustainability is also vital and we’ll look at that soon.

The dividend yield comes in at 2.1% and that’s below the 10-year average of 3%. The chart below shows the dividend yield over the last 10 years…

The lower yield shows that investors have bid up the company’s market value. They might be expecting higher growth and payouts. But more often than not, the dividend yield is mean reverting with share price changes.

Improved Dividend Safety Check

Many investors look at the payout ratio to determine dividend safety. They look at the dividend per share divided by the net income per share. So, a payout ratio of 60% would mean that every $1 Raytheon earns, it pays investors $0.60.

The payout ratio is a good indicator of dividend safety… but accountants can manipulate net income. They adjust for goodwill and other non-cash items. A better metric is free cash flow.

Here’s Raytheon’s payout ratio based on free cash flow over the last 10 years…

The ratio is volatile over the last 10 years and the trend is up. In 2015 the company increased capital spending which caused the payout ratio to increase. Since then, the trend has returned to the 30% to 40% range. Last year’s payout ratio was 37.3%. This gives wiggle room for Raytheon’s board of directors to raise the dividend.

If you’re interested in seeing more dividend research, please comment below. You can also check out our free DRIP calculator. With it, you can uncover the power of dividend reinvestment growth.

Also, if you are planning your retirement make sure to use our retirement readiness calculator. It will help you find out if you’re on track for a wealthy retirement.

Good investing,

Robert

The post Is Raytheon’s Dividend Safe? Three Unique Charts… appeared first on Wealthy Retirement.

Business Overview and Highlights

Carlisle Companies Incorporated (NYSE: CSL) designs, manufacturers, and markets a wide range of products that serve niche markets like roofing, agriculture, lawncare, mining, electronics, and healthcare. The $7.9 billion business is based out of Arizona and it employs 13,000 people. Last year Carlisle pulled in $4.5 billion in sales and that works out to $345,000 per employee.

The company runs within the industrial sector and maintains a solid credit rating (BBB) from the S&P. This allows Carlisle to issue cheap debt to grow the business and finance other initiatives.

On May 7, 2019, Carlisle’s board of directors declared a dividend of $0.40 per share. The dividend is payable on June 3 to shareholders of record at the close of business on May 15.

10-Year Dividend History

The company paid investors $0.63 per share a decade ago. Over the last 10 years, the dividend has climbed to $1.54. That’s a 144% increase and you can see the annual changes below…

The compound annual growth is 9.3% over 10 years… but over the last year, the dividend climbed 6.9%. The slowdown in dividend growth isn’t a great sign. Although, Carlisle still might be a good income investment. Let’s take a look at the yield…

Current Yield vs. 10-Year Average

Carlisle’s long history of paying dividends makes it one of the best dividend stocks around. This also makes the dividend yield a great indicator of value. A higher yield is generally better for buyers. Sustainability is also vital and we’ll look at that soon.

The dividend yield comes in at 1.16% and that’s below the 10-year average of 1.53%. The chart below shows the dividend yield over the last 10 years…

The lower yield shows that investors have bid up the company’s market value. They might be expecting higher growth and payouts. But more often than not, the dividend yield is mean reverting with share price changes.

Improved Dividend Safety Check

Many investors look at the payout ratio to determine dividend safety. They look at the dividend per share divided by the net income per share. So, a payout ratio of 60% would mean that every $1 Carlisle earns, it pays investors $0.60.

The payout ratio is a good indicator of dividend safety… but accountants can manipulate net income. They adjust for goodwill and other non-cash items. A better metric is free cash flow.

Here’s Carlisle’s payout ratio based on free cash flow over the last 10 years…

The ratio is volatile over the last 10 years and the trend is down. In 2010 Carlisle reported only $42 million in free cash flow which caused the payout ratio to spike. Fortunately, last year shows a payout ratio of 42.6% with $218 million in free cash flow. This gives wiggle room for Carlisle’s board of directors to raise the dividend.

If you’re interested in seeing more dividend research, please comment below. You can also check out our free DRIP calculator. With it, you can uncover the power of dividend reinvestment growth.

Also, if you are planning your retirement make sure to use our retirement readiness calculator. It will help you find out if you’re on track for a wealthy retirement.

Good investing,

Robert

The post Carlisle’s Dividend History and Safety appeared first on Wealthy Retirement.