Brunswick Corporation (NYSE: NYSE:BC) announced on Friday an increase in its annual dividend to $0.40, to be paid on December 15th, marking a 2.2% yield based on the current stock price. Despite falling below industry standards, the increased dividend is well-supported by the company's robust earnings and cash flow, which allows for significant business reinvestment. According to InvestingPro data, Brunswick's market cap stands at 5080M USD with a P/E ratio of 3.08.
The company's earnings per share (EPS) are projected to grow by 41.0% over the next year. This growth, along with the updated dividend trajectory, suggests a payout ratio of approximately 17%, indicating sustainable dividends. Brunswick has maintained a consistent dividend payment history since 2013 and has seen an annual dividend increase rate of about 41%, positioning it as a potentially rewarding dividend stock. As an InvestingPro Tip, it's worth mentioning that Brunswick has raised its dividend for 11 consecutive years and has maintained dividend payments for 53 consecutive years.
Over the past five years, Brunswick's EPS has grown substantially at an annual rate of 50%. This rapid earnings growth, coupled with a low payout ratio, not only covers distributions but also generates significant cash inflow for Brunswick. This solid financial performance underpins the company's stable dividend policy. The InvestingPro data also shows revenue growth of 5.28% LTM2023.Q2, although the growth has been slowing down recently as per the InvestingPro Tips.
While the increased dividend and strong earnings growth present an appealing prospect for investors, they should remain aware of potential warning signs before committing funds. The InvestingPro data reveals a 1 Year Price Total Return of 12.4%, but also a 3 Month Price Total Return of -14.53%. This suggests that although the annual return has been positive, the recent quarterly performance has been negative.
For more insightful tips and real-time metrics, consider exploring the InvestingPro product which includes additional tips and metrics. Currently, there are nine more tips and a plethora of real-time metrics available on InvestingPro for Brunswick Corporation.
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