NEW YORK - Myers Industries, Inc. (NYSE:MYE) has announced a dividend of $0.135 per share, payable on January 3rd, which represents a yield of 3.2%. This yield is in line with the industry average and reflects a payout ratio that could reach 43%, should the current dividend trend continue. This level suggests there is ample room for the company to grow its business.
The company's dividends are well-supported by both cash flow and earnings, indicating that its growth can be sustained. Myers Industries has maintained a steady record of dividend payments, with annual amounts rising from $0.36 in 2013 to $0.54 recently. This increase corresponds to a compound annual growth rate (CAGR) of 4.1%. Such consistent performance demonstrates the company's stability and commitment to returning value to shareholders.
Over the past five years, Myers Industries has achieved an impressive annual EPS growth rate of 15%, paired with a low payout ratio. This combination showcases the company's effective strategy in reinvesting its earnings, which may lead to potential future increases in dividends.
Despite the positive outlook, there is an expected decline of 6.9% in earnings per share over the next year. While this forecasted dip might affect the momentum, it is unlikely to cause significant disruptions unless it marks the beginning of a persistent downward trend.
Investors considering Myers Industries as a dividend stock should note its promising aspects but are also advised to look at other factors beyond the dividend yield and history when assessing the company's overall potential.
InvestingPro Insights
Drawing on real-time data from InvestingPro, Myers Industries boasts a market capitalization of 615.94M USD and a P/E ratio of 12.37. Over the last twelve months up to Q2 2023, the company's revenue stood at 865.1M USD, with a growth rate of 0.79%.
InvestingPro Tips highlight that Myers Industries yields a high return on invested capital and has consistently increased its earnings per share. The company's valuation implies a strong free cash flow yield, and it has a history of delivering high shareholder yield. On top of that, Myers Industries has maintained dividend payments for an impressive 52 consecutive years, a testament to its financial stability.
For those seeking more comprehensive insights, InvestingPro offers a wealth of additional tips and data points. With a total of 13 tips available for Myers Industries, investors can delve deeper into the company's financial performance and market position.
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