Spectrum Brands Holdings Inc (NYSE:SPB): Dividend Is Coming In 3 Days, Should You Buy?

Have you been keeping an eye on Spectrum Brands Holdings Inc’s (NYSE:SPB) upcoming dividend of $0.42 per share payable on the 13 March 2018? Then you only have 3 days left before the stock starts trading ex-dividend on the 16 February 2018. What does this mean for current shareholders and potential investors? Below, I will explain how holding Spectrum Brands Holdings can impact your portfolio income stream, by analysing the stock’s most recent financial data and dividend attributes. See our latest analysis for Spectrum Brands Holdings

5 checks you should do on a dividend stock

If you are a dividend investor, you should always assess these five key metrics:

  • Is it the top 25% annual dividend yield payer?

  • Has it paid dividend every year without dramatically reducing payout in the past?

  • Has dividend per share risen in the past couple of years?

  • Is is able to pay the current rate of dividends from its earnings?

  • Will it have the ability to keep paying its dividends going forward?

NYSE:SPB Historical Dividend Yield Feb 12th 18
NYSE:SPB Historical Dividend Yield Feb 12th 18

How well does Spectrum Brands Holdings fit our criteria?

The current trailing twelve-month payout ratio for the stock is 24.31%, meaning the dividend is sufficiently covered by earnings. Going forward, analysts expect SPB’s payout to increase to 33.36% of its earnings, which leads to a dividend yield of 1.80%. However, EPS is forecasted to fall to $5.36 in the upcoming year. Therefore, although payout is expected to increase, the fall in earnings may not equate to higher dividend income. If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you’re eyeing out is reliable in its payments. The reality is that it is too early to consider Spectrum Brands Holdings as a dividend investment. It has only been consistently paying dividends for 5 years, however, standard practice for reliable payers is to look for a 10-year minimum track record. In terms of its peers, Spectrum Brands Holdings produces a yield of 1.57%, which is on the low-side for Household Products stocks.

Next Steps:

Now you know to keep in mind the reason why investors should be careful investing in Spectrum Brands Holdings for the dividend. On the other hand, if you are not strictly just a dividend investor, the stock could still be offering some interesting investment opportunities. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. I’ve put together three key aspects you should look at:


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.