Where does Eaton Vance rank after its 6% announced dividend increase?

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Eaton Vance Corporation (EV) announced a regular quarterly dividend of $0.28, a 6 percent increase from the prior rate of $0.265 per share. The dividend will be paid at the new higher rate on November 15, 2016, to shareholders of record at close of business on October 31, 2016. Eaton Vance Corp. is currently priced at $37.26.

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

Date Quarterly Dividend
10/31/2016 0.28
7/27/2016 0.265
4/27/2016 0.265
1/27/2016 0.265
10/28/2015 0.265
7/29/2015 0.25
4/28/2015 0.25
1/28/2015 0.25
10/29/2014 0.25
7/29/2014 0.22
4/28/2014 0.22
1/29/2014 0.22
10/29/2013 0.22
7/29/2013 0.2
4/26/2013 0.2
12/13/2012 0.2
12/12/2012 1
10/31/2012 0.2
7/27/2012 0.19
4/26/2012 0.19
1/27/2012 0.19
10/27/2011 0.19
7/27/2011 0.18
4/27/2011 0.18
1/27/2011 0.18
10/27/2010 0.18
7/28/2010 0.16
6/21/2010 0.16
4/28/2010 0.16
1/27/2010 0.16

Analysis of Eaton Vance Corp. is based upon our five key criteria for the Top 100 list, which include; 

Category Value Score
Dividend Yield 2.81% 170
Dividend Growth (3-6 year avg) 9% 241
Forward P/E 15.38 113
S&P Financial Rating B+ 200
Beta 1.25 200
Total Score   924

Additional Information on P/S ratio and historical yield;

% 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 %
2.81% 9.5% 8.5% 11.85 3.14 3.01 5.15 3.75% 1.77%

Final Analysis;

  • Eaton Vance’s dividend yield is above the average of the S&P 500 Index and is at its average historical dividend yield.
  • Eaton Vance maintains a 3 year dividend growth rate of 9.5%.
  • Eaton Vance has paid out a dividend consecutively for the past 21 years.
  • Eaton Vance is trading at a modest forward P/E ratio and at a low price/sales (P/S) ratio.  From a relative valuation perspective based upon P/S, Eaton Vance is undervalued.
  • Eaton Vance maintains a credit rating of B+. This is below investment grade, a negative.
  • Eaton Vance maintains a beta of 1.25, higher than the average company.

Based upon its poor financial rating and high beta, Eaton Vance Corp. does not qualify as one of our Top 100 Dividend Stocks.

Eaton Vance 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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