Where does Masco rank after its 5% announced dividend increase?

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Masco Corporation announced a regular quarterly dividend of $0.10, a 5 percent increase from the prior rate of $0.095 per share. The dividend will be paid at the new higher rate on November 14, 2016, to shareholders of record at close of business on October 14, 2016.

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

Date Quarterly Dividend
10/14/2016 0.1
7/6/2016 0.095
4/6/2016 0.095
1/6/2016 0.095
10/7/2015 0.095
7/9/2015 0.09
4/8/2015 0.079
1/7/2015 0.079
10/8/2014 0.079
6/12/2014 0.079
4/9/2014 0.066
1/8/2014 0.066
10/9/2013 0.066
7/2/2013 0.066
4/3/2013 0.066
1/2/2013 0.066
10/10/2012 0.066
7/3/2012 0.066
4/4/2012 0.066
1/4/2012 0.066
10/5/2011 0.066
7/6/2011 0.066
4/6/2011 0.066
1/5/2011 0.066
10/6/2010 0.066
7/7/2010 0.066
4/7/2010 0.066
1/6/2010 0.066

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

Category Value Score
Dividend Yield 1.11 220
Dividend Growth (5 year VL) -10% 239
Trailing P/E 26.2 201
S&P Financial Rating B 240
Beta 1.40 225
Total Ranking #NA 960

Additional Information;

Price 9/26/16 % 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 %
$34.33 1.11% -10% 23.0 1.49 0.16 1.49 4.70% 1.05%

Final Analysis;

  • Masco’s dividend yield is on average with that of the S&P 500 Index and is also trading towards the lower end of its average historical dividend yield.
  • Masco maintains a 5 year dividend growth rate of -10%   This is lower than all other companies in the sector and ranks 239 among all companies.
  • Masco is trading at the top of its average price/sales (P/S) range at 1.49.  From a relative valuation perspective, Masco is overvalued based upon its historical trading history.
  • Masco maintains a credit rating of B. This is below investment grade, a negative.
  • Masco maintains a beta of 1.40, lower than the average company.
  • Masco’s total ranking falls outside our universe of 250 dividend stocks.

Based upon its high beta, negative dividend growth rate and poor credit rating, Masco does not qualify as one of our Top 100 Dividend Stocks.

Masco Corp. 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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