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3 Long-Term Payers Announce Dividends

GuruFocus.com
·4 mins read

Energizer Holdings Inc (NYSE:ENR), Textron Inc (NYSE:TXT) and SmartFinancial Inc (NASDAQ:SMBK) announced quarterly dividends on Monday, July 27.

These companies attract the interest of dividend investors because they have been distributing dividends for several years.

Energizer Holdings Inc

The St. Louis, Missouri-based global manufacturer and distributor of household and specialty batteries announced that on Sept. 10, it will proceed with the payment of a quarterly cash dividend of 30 cents per common share to its shareholders of record as of Aug. 20.


The payment will be on par with the previous one. The ex-dividend date is scheduled for Aug. 19.

Based on Monday's closing price of $49.11 per share, the quarterly cash dividend generates a forward dividend yield of 2.44%.

Energizer Holdings Inc has distributed dividends for nearly five years and increased them by a compound annual growth rate of 5.4% over the past three years.

The company sustains the payment with cash on hand of $280 million and trailing 12-month operating cash flow of approximately $235 million as of the most recent quarter ended on March 30.

GuruFocus has assigned a score of 3 out of 10 to the company's financial strength.

The share price has risen 18.7% over the past year, determining a 52-week range of $26.60 to $53.84.

The stock has a market capitalization of $3.36 billion, a price-book ratio of 9 versus the industry median of 1.47 and a price-sales ratio of 1.27 versus the industry median of 1.07.

Wall Street sell-side analysts recommend an overweight rating for this stock and have produced an average target price of $50.46 per share.

Textron Inc

The Providence, Rhode Island-based aircraft and defense operator announced that on Oct. 1, it will pay a quarterly cash dividend of 2 cents per common share to its shareholders of record Sept. 11.

The ex-dividend date is scheduled for Sept. 10. The payment will be on par with the previous one.

Based on Monday's closing price of $34.18 per share, the quarterly dividend produces a forward dividend yield of 0.23%.

Textron Inc has been distributing dividends for nearly 31 years but has not increased them over the last 10 years.

The company finances the payment of the quarterly dividend with $2.3 billion in cash on hand and approximately $835 million in cash flows from the prior 12 months of operating activities through April 3.

GuruFocus has assigned a positive score of 5 out of 10 to the financial strength of the company.

The share price has fallen by 31.4% over the past year for a 52-week range of $20.26 to $58.

The market capitalization is $7.78 billion, the price-book ratio is 1.4 versus the industry median of 1.78 and the price-sales ratio yields 0.59 versus the industry median of 1.2.

Wall Street sell-side analysts recommend a moderate buy rating for the stock and have established an average target price of $34.71 per share.

SmartFinancial Inc

The Knoxville, Tennessee-based regional bank with branches in Tennessee, Alabama, Florida and Georgia announced that on Aug. 24, a 5 cents per common share quarterly cash dividend will be distributed to shareholders of record as of Aug. 7.

The distribution will be in line with the previous one. The ex-dividend date is scheduled for Aug. 6.

Based on Monday's closing price of $13.95 per share, the quarterly dividend generates a forward yield of 1.42%.

The dividend reports a sharp decline of 18.6% over the past 10 years. SmartFinancial Inc has made dividend payments for nearly 15 years.

The company sustains the quarterly dividend with nearly $400 million available in cash on hand and equivalents.

GuruFocus has assigned a score of 3 out of 10 to the company's financial strength.

The share price has declined by 36.2% in the past year, determining a 52-week range of $11.05 to $23.99.

The stock has a market capitalization of $212.28 million, a price-book ratio of 0.62 versus the industry median of 0.74 and a price-sales ratio of 2.02 which is on par with the industry median.

Wall Street sell-side analysts issued an overweight recommendation rating for the stock and have set an average target price of $17.67 per share.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.