Beam, Recently-Spun Off Booze Distiller, Has Room to Up its Dividend

Beam Inc. (BEAM) gave dividend junkies another reason to celebrate Thursday when it announced it would be dispensing another quarterly dividend (20.5 cents a share) to shareholders, bringing its total dividend payout in its first year as a publicly traded company to 82 cents a share.

Beam, the year-old spin-off formerly known as Fortune Brands, is the world's fourth-largest premium spirits company and the largest U.S.-based spirits company and has returned a healthy dividend to shareholders in each quarter since its debut. Its brands include the likes of Maker's Mark, Canadian Club and Skinnygirl Cocktails. In August, it reported second-quarter earnings of $100.3 million, or 62 cents a share, on net sales (excluding excise taxes) of $595 million, up 4.4% from the year-ago quarter.

Here's a closer look at its dividend prowess so far this year:

BEAM Dividend Chart

BEAM Dividend data by YCharts

And Beam isn't the only spirits company pouring with a heavy hand this year. Diageo’s (DEO) dividend yield is more generous.

DEO Dividend Chart

DEO Dividend data by YCharts

Beam’s dividend yield isn’t anything to write home about. Yet. Beam's payout ratio of 0.1344 suggests that this established, household brand still has plenty to offer dividend-seeking investors.

BEAM Payout Ratio TTM Chart

BEAM Payout Ratio TTM data by YCharts

Despite delivering such strong dividends and earnings this year, six of the 14 analyst following the stock rate it a "hold," five are calling it either a "buy" or "strong buy" and three have assigned it an "underperform" rating.

Larry Barrett is an editor for the YCharts Pro Investor Service which includes professional stock charts, stock ratings and portfolio strategies.

Read more articles about: Company Analysis  

blog comments powered by Disqus
Advertisement

Search Articles

Subscribe to YCharts Analysis

Advertisement

{{root.upsell.info.feature_headline}}.
Upgrade to {{root.upsell.info.tier_name}}. Start your {{root.upsell.info.tier_name}} Membership

{{root.upsell.info.feature_description}}

{{root.upsell.info.is_upgrade ? "Upgrade Now" : "Start My Free Trial"}}

Already a {{root.upsell.info.tier_name}} Member? Sign in here.