Where does Brunswick rank after its 10% announced dividend increase?

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Brunswick Corporation (BC) announced an annual dividend of $0.165, a 10 percent increase from the prior rate of $0.15 per share. The dividend will be paid at the new higher rate on December 15, 2016, to shareholders of record at close of business on November 22, 2016. Brunswick Corp. is currently priced at $48.34.

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

Date Quarterly Dividend
11/22/2016 0.165
8/19/2016 0.15
5/20/2016 0.15
2/19/2016 0.15
11/20/2015 0.15
8/21/2015 0.125
5/21/2015 0.125
2/20/2015 0.125
11/21/2014 0.125
8/21/2014 0.125
5/22/2014 0.1
2/21/2014 0.1
11/18/2013 0.1
11/16/2012 0.05
11/18/2011 0.05
11/19/2010 0.05

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

Category Value Score
Dividend Yield 1.25% 361
Dividend Growth (3-6 year avg) 131.3% 2
Forward P/E 12.20 60
S&P Financial Rating B++ 160
Beta 1.55 250
Total Score   833

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 %
1.25% 181.7% 80.8% 49.80 0.97 0.27 1.2 1.38% 0.31%

Final Analysis;

  • Brunswick’s dividend yield is below that of the S&P 500 Index and is above its average historical dividend yield.
  • Brunswick maintains a 3 year dividend growth rate of 181.7%.
  • Brunswick has paid out a dividend consecutively for the past 3 years.
  • Brunswick is trading at a low forward P/E ratio and at a high price/sales (P/S) ratio.  From a relative valuation perspective based upon P/S, Brunswick is overvalued.
  • Brunswick maintains a credit rating of B++. This is below investment grade, a negative.
  • Brunswick maintains a beta of 1.55, higher than the average company.

Based upon its poor financial rating, low dividend, and very high beta, Brunswick Corp. does not qualify as one of our Top 100 Dividend Stocks.

Brunswick 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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