Where does Sensient rank after its 11% announced dividend increase?

sxt

Sensient Technologies Corporation (SXT) announced an annual dividend of $0.30, an 11 percent increase from the prior rate of $0.27 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 7, 2016. Sensient Technologies Corp. is currently priced at $71.37.

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

Date Quarterly Dividend
11/7/2016 0.3
8/3/2016 0.27
5/4/2016 0.27
2/4/2016 0.27
11/4/2015 0.27
8/5/2015 0.27
5/6/2015 0.25
2/5/2015 0.25
11/5/2014 0.25
8/6/2014 0.25
5/7/2014 0.25
2/5/2014 0.23
11/6/2013 0.23
8/6/2013 0.23
5/7/2013 0.23
2/6/2013 0.22
11/7/2012 0.22
8/6/2012 0.22
5/7/2012 0.22
2/7/2012 0.21
11/7/2011 0.21
8/4/2011 0.21
5/5/2011 0.21
2/7/2011 0.21
11/5/2010 0.2
8/4/2010 0.2
5/4/2010 0.2
2/5/2010 0.19

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

Category Value Score
Dividend Yield 1.50%  341
Dividend Growth (3-6 year avg) 6.3%  286
Forward P/E 19.46  193
S&P Financial Rating B++  160
Beta 1.10  150
Total Score    1,130

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 %
1.50% 6.8% 5.8% 31.55 2.26 0.90 2.30 2.48% 1.44%

Final Analysis;

  • Sensient’s dividend yield is below that of the S&P 500 Index and is below its average historical dividend yield.
  • Sensient maintains a 3 year dividend growth rate of 6.8%.
  • Sensient has paid out a dividend consecutively for the past 19 years.
  • Sensient is trading at a high forward P/E ratio and at a high price/sales (P/S) ratio.  From a relative valuation perspective based upon P/S, Sensient is overvalued.
  • Sensient maintains a credit rating of B++. This is below investment grade, a negative.
  • Sensient maintains a beta of 1.10, higher than the average company.

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

Sensient Technologies Corp. Dividend Yield Chart (Click to enlarge) sxt

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

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s