Commercial Metals Company (NYSE:CMC) will increase its dividend on the 10th of April to $0.18, which is 13% higher than last year’s payment from the same period of $0.16. Even though the dividend went up, the yield is still quite low at only 1.1%.
See our latest analysis for Commercial Metals
Commercial Metals’ Dividend Is Well Covered By Earnings
Even a low dividend yield can be attractive if it is sustained for years on end. However, Commercial Metals’ earnings easily cover the dividend. As a result, a large proportion of what it earned was being reinvested back into the business.
The next year is set to see EPS grow by 5.4%. If the dividend continues along recent trends, we estimate the payout ratio will be 9.6%, which is in the range that makes us comfortable with the sustainability of the dividend.
Commercial Metals Has A Solid Track Record
The company has a…
