Scotts Miracle-Gro’s dividend
The Scotts Miracle-Gro Company (SMG) announced a 6% dividend increase to $0.53 per quarter from $0.5 per quarter. The company has consistently raised its dividend in the past. The recent three-year growth averaged ~5% per year.
Usually, investors look at the dividend yield instead of the absolute dividend amount to be received per share. The measure is important for income or dividend investors. The dividend yield shows the yield on investment per dollar amount.
In the above chart, you can see that the company’s dividend yield was at its peak. However, it fell for the next two years. The dividend yield fell in each of the quarters in 2017. The lower dividend yield was primarily due to the company’s significant stock appreciation over the past year, as we discussed earlier this series.
In 2016, the company had a dividend yield of 2.3%. Keep in mind that the company’s 48% return from its total return was ~50% last year alone.
Peers’ dividend yield
Spectrum Brands Holdings (SPB) had a dividend yield of 1.1% in 2016, while the HRG Group (HRG) and Central Gardens & Pet Company (CENT) don’t distribute dividends. On the other hand, fertilizer companies (MOO) such as PotashCorp (POT) had a dividend yield of 5.4% in 2016 and Agrium had a dividend yield of 3.5% in 2016.
For more updates, visit Market Realist’s Agricultural Fertilizers page.