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A Look at Corning, Another Top Dividend Grower

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Corning’s net sales and earnings in 2015 and 2016

Corning’s (GLW) net sales fell 6% in 2015 before rising 3% in 2016. Its North American net sales rose in 2015 before falling slightly in 2016, and its Asia-Pacific, European, and other net sales fell in 2015 and rose in 2016. In 2015, its Optical Communications segment’s net sales rose, offset by its Display Technologies, Environment Technologies, Specialty Materials, and Life Sciences segments. In 2016, every segment but Environmental Technologies saw growth.

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The company’s operating expenses rose 10% and 1% in 2015 and 2016, respectively. Its operating income fell 32% in 2015 before gaining 5% in 2016, and its interest expenses rose in both years, translating into a 42% EPS (earnings per share) fall in 2015 and a 223% rise in 2016. Its 2016 EPS were enhanced by a gain from equity investment realignment and share buybacks.

Corning’s net sales and earnings in the first nine months of 2017

Corning’s net sales rose 8% in the first nine months of 2017. Every segment but Display Technologies drove growth. Its operating expenses fell 3%, its operating income rose 31%, and its interest expenses rose as well. The company’s EPS fell 51%, as its EPS in the first nine months of 2016 were enhanced by equity investment realignment and share buybacks. Whereas the company has maintained a good free cash flow balance, it has fallen year-to-date.

The iShares Core High Dividend ETF (HDV), a dividend fund, has 13% exposure to technology, a 3.3% dividend yield, and a PE (price-to-earnings) ratio of 21x. The WisdomTree Emerging Markets Equity Income ETF (DEM) has 63% and 14% exposure to Asia and technology, respectively. It has a 3.8% dividend yield and a PE ratio of 10.7x. In the next part, we’ll look at the company’s dividends and compare its performance with that of broad market indexes (SPX-INDEX) (SPY) (DJIA-INDEX) (DIA) (COMP-INDEX) (ONEQ).

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