Where does Goodyear rank after its 43% announced dividend increase?

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The Goodyear Tire & Rubber Company announced a regular quarterly dividend of $0.10, a 43 percent increase from the prior rate of $0.07 per share. The dividend will be paid at the new higher rate on December 1, 2016, to shareholders of record at close of business on November 1, 2016.

Listed in the table below are the quarterly dividend payments since 2010. Our analysis of Goodyear as a Top 100 Dividend Stock candidate is listed below

Date Quarterly Dividend
11/1/2016 0.1
7/28/2016 0.07
4/28/2016 0.07
1/28/2016 0.07
10/29/2015 0.07
7/29/2015 0.06
4/29/2015 0.06
1/29/2015 0.06
10/29/2014 0.06
7/30/2014 0.06
4/29/2014 0.05
1/29/2014 0.05
10/30/2013 0.05

Analysis of Goodyear is based upon our five key criteria for the Top 100 list, which include; 

Category Value Score
Dividend Yield 1.00 228
Dividend Growth (5 year VL) NA NA
Trailing P/E 31.9 225
S&P Financial Rating B+ 240
Beta 1.45 225
Total Ranking #NA NA

Additional Information;

Price 9/19/16 % Yield 5 Year Div. Growth Rate  SPS    2016 P/S Ratio 10 yr P/S Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$32.22 1% NA% 59.45 0.54 0.05 0.54 1.08% 0.23%

Final Analysis;

  • Goodyear’s dividend yield is on average with that of the S&P 500 Index and is also trading towards the higher end of its average historical dividend yield.
  • Goodyear has not maintained a dividend for the past 5 years.
  • Goodyear is trading at the top of its average price/sales (P/S) range at 0.54.  From a relative valuation perspective, Goodyear is overvalued based upon its historical trading history.
  • Goodyear maintains a credit rating of B+. This is below investment grade, a negative.
  • Goodyear maintains a beta of 1.45, higher than the average company.
  • Goodyear falls outside our universe of 250 dividend stocks.

Based upon its limited dividend history, high beta and poor credit rating, Goodyear does not qualify as one of our Top 100 Dividend Stocks.

The Goodyear Tire & Rubber Co. Dividend Yield Chart (Click to enlarge)

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Chart Explanation:  Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.

Further information on dividend investing and evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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