Canada markets open in 18 minutes
  • S&P/TSX

    18,979.01
    -256.08 (-1.33%)
     
  • S&P 500

    3,744.52
    -38.76 (-1.02%)
     
  • DOW

    29,926.94
    -346.93 (-1.15%)
     
  • CAD/USD

    0.7290
    +0.0013 (+0.18%)
     
  • CRUDE OIL

    89.29
    +0.84 (+0.95%)
     
  • BTC-CAD

    26,895.40
    -900.62 (-3.24%)
     
  • CMC Crypto 200

    446.54
    -16.59 (-3.58%)
     
  • GOLD FUTURES

    1,707.10
    -13.70 (-0.80%)
     
  • RUSSELL 2000

    1,752.51
    -10.18 (-0.58%)
     
  • 10-Yr Bond

    3.9000
    +0.0740 (+1.93%)
     
  • NASDAQ futures

    11,327.25
    -214.50 (-1.86%)
     
  • VOLATILITY

    30.50
    +1.95 (+6.83%)
     
  • FTSE

    6,975.76
    -21.51 (-0.31%)
     
  • NIKKEI 225

    27,116.11
    -195.19 (-0.71%)
     
  • CAD/EUR

    0.7468
    +0.0042 (+0.57%)
     

Brady (NYSE:BRC) Will Pay A Dividend Of US$0.23

·2 min read

Brady Corporation (NYSE:BRC) has announced that it will pay a dividend of US$0.23 per share on the 29th of July. This means the annual payment is 1.9% of the current stock price, which is above the average for the industry.

See our latest analysis for Brady

Brady's Earnings Easily Cover the Distributions

If the payments aren't sustainable, a high yield for a few years won't matter that much. However, prior to this announcement, Brady's dividend was comfortably covered by both cash flow and earnings. This means that most of what the business earns is being used to help it grow.

The next year is set to see EPS grow by 23.5%. If the dividend continues on this path, the payout ratio could be 27% by next year, which we think can be pretty sustainable going forward.

historic-dividend
historic-dividend

Brady Has A Solid Track Record

The company has an extended history of paying stable dividends. Since 2012, the first annual payment was US$0.74, compared to the most recent full-year payment of US$0.90. This implies that the company grew its distributions at a yearly rate of about 2.0% over that duration. Dividends have grown relatively slowly, which is not great, but some investors may value the relative consistency of the dividend.

Brady Could Grow Its Dividend

Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. We are encouraged to see that Brady has grown earnings per share at 7.8% per year over the past five years. With a decent amount of growth and a low payout ratio, we think this bodes well for Brady's prospects of growing its dividend payments in the future.

Brady Looks Like A Great Dividend Stock

Overall, we think that this is a great income investment, and we think that maintaining the dividend this year may have been a conservative choice. Earnings are easily covering distributions, and the company is generating plenty of cash. Taking this all into consideration, this looks like it could be a good dividend opportunity.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. Earnings growth generally bodes well for the future value of company dividend payments. See if the 4 Brady analysts we track are forecasting continued growth with our free report on analyst estimates for the company. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.