Why Crane Co (NYSE:CR) Is A Dividend Rockstar
Over the past 10 years Crane Co (NYSE:CR) has returned an average of 2.00% per year from dividend payouts. The company currently pays out a dividend yield of 1.51% to shareholders, making it a relatively attractive dividend stock. Let’s dig deeper into whether Crane should have a place in your portfolio. Check out our latest analysis for Crane
Here’s how I find good dividend stocks
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is it paying an annual yield above 75% of dividend payers?
Has it consistently paid a stable dividend without missing a payment or drastically cutting payout?
Has the amount of dividend per share grown over the past?
Can it afford to pay the current rate of dividends from its earnings?
Will the company be able to keep paying dividend based on the future earnings growth?
Does Crane pass our checks?
The company currently pays out 45.64% of its earnings as a dividend, according to its trailing twelve-month data, which means that the dividend is covered by earnings. In the near future, analysts are predicting lower payout ratio of 21.56%, leading to a dividend yield of around 1.56%. However, EPS should increase to $5.53, meaning that the lower payout ratio does not necessarily implicate a lower dividend payment. If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. In the case of CR it has increased its DPS from $0.72 to $1.4 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes CR a true dividend rockstar. Relative to peers, Crane produces a yield of 1.51%, which is on the low-side for Machinery stocks.
Next Steps:
Considering the dividend attributes we analyzed above, Crane is definitely worth keeping an eye on for someone looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three relevant aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for CR’s future growth? Take a look at our free research report of analyst consensus for CR’s outlook.
Valuation: What is CR worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether CR is currently mispriced by the market.
Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
