Where does Thor Industries rank after its 10% announced dividend increase?

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Thor Industries Inc. (THO) announced a regular quarterly dividend of $0.33, a 10 percent increase from the prior rate of $0.30 per share. The dividend will be paid at the new higher rate on November 7, 2016, to shareholders of record at close of business on October 24, 2016. Thor Industries Inc. is currently priced at $84.79. 

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

Date Quarterly Dividend
10/24/2016 0.33
6/16/2016 0.3
3/30/2016 0.3
12/18/2015 0.3
10/14/2015 0.3
6/24/2015 0.27
4/1/2015 0.27
12/19/2014 0.27
10/15/2014 0.27
6/11/2014 0.23
3/26/2014 0.23
12/24/2013 0.23
11/1/2013 1
10/16/2013 0.23
6/14/2013 0.18
4/5/2013 0.18
12/19/2012 1.68
9/20/2012 0.18
6/15/2012 0.15
3/30/2012 0.15
12/27/2011 0.15
9/28/2011 0.15
6/16/2011 0.1
4/6/2011 0.1
12/21/2010 0.1
10/14/2010 0.1
6/24/2010 0.07
3/18/2010 0.07

Analysis of Thor Industries Inc. is based upon our five key criteria for the Top 100 list, which include; 

Category Value Score
Dividend Yield 1.41% 351
Dividend Growth (3-6 year avg) 22.9% 70
Forward P/E 12.83 66
S&P Financial Rating A 120
Beta 1.20 175
Total Score   782

Additional Information;

% Yield 3 Year Div. Growth Rate 6 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 %
1.41% 17% 28.9% 86.50 0.98 0.77 1.20 2.34% 1.22%

Final Analysis;

  • Thor Industries’ dividend yield is on average with that of the S&P 500 Index and is trading at the lower end of its average historical dividend yield.
  • Thor Industries maintains a 3 year dividend growth rate of 17%.
  • Thor Industries has paid out a dividend consecutively for the past 29 years.
  • Thor Industries is trading at a modest forward P/E ratio and is at its average price/sales (P/S) range.  From a relative valuation perspective based upon P/S, Thor Industries is valued correctly.
  • Thor Industries maintains a credit rating of A. This is investment grade, a positive.
  • Thor Industries maintains a beta of 1.20, higher than the average company.

Based upon its above-average beta and lower than average yield, Thor Industries does not qualify as one of our Top 100 Dividend Stocks.

Thor Industries Inc. Dividend Yield Chart (Click to enlarge) tho

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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