Dividend Growth May Return For Former Aristocrat Diebold

Summary
Diebold is engaged in a turnaround. The company's revenue, gross margin, operating profit, and free cash flow have all fallen since 2008.
Diebold can attribute the strength of its dividend, as well as its solid Dividend Cushion ratio, to its strong free cash flow generation.
Diebold was once on the elite list of Dividend Aristocrats, having increased its dividend for 60 consecutive years. That streak ended in 2014.
Let's take a look at the company's key investment considerations and uncover the drivers behind its Dividend Cushion ratio.
Key Investment Considerations
Diebold's (NYSE: DBD) dividend yield is above average, offering a 3.1% yield at recent price levels. We prefer yields above 3% and generally don't include firms with yields below 2% in the Dividend Growth Newsletter portfolio, so we would consider Diebold as a strong consideration, even though it is not currently a holding.
• Diebold provides software-led services and self-service delivery and security systems. One example of self-service solutions is the automated teller machine (ATM), of which it manages 22,000+ (the most in North America). Financial self-service accounts for ~75% of revenue.
• Diebold's business quality ranks among the best of the firms in our coverage universe. The firm has been generating economic value for shareholders with relatively stable operating results for the past few years, a combination we view very... Read more

Older articles featuring DBD: