Diebold Incorporated (DBD), a manufacturer, supplier and servicing company for ATM's and security systems has recently declared a raise in the quarterly dividend for the 59th year in a row. The quarterly dividend is now $0.28.5 cents per share, up from the previous quarterly dividend of $0.28 per share. This new dividend amounts to $1.14 per share on an annual basis, which is an increase of 1.8 percent from the previous annual dividend payout.
Per Morningstar:
Diebold builds, sells, and services ATMs and security products and systems. The majority of Diebold's revenue comes from the sale and service of ATMs, split about equally between the two. The firm also provides security solutions such as access control products, video surveillance, and communications systems. The company derives roughly half of its revenue from overseas.
Diebold has one of the longest known records of raising its dividend. Usually, a company that has raised its dividend for 59 years in a row is a prime candidate for my stock portfolio. Unfortunately, this company's future prospects concern me. Earnings and revenue are on the severe decline and the payout ratio is sky high. I admire the company for continuing to raise the dividend, even if it's a token amount, but I'll be putting my capital to work in other places. DBD currently does not have a P/E ratio due to negative earnings and they sport a fairly high debt/equity ratio of 0.8. I don't see a large economic moat or competitive advantage here, and I also don't see a lot of growth in its business going forward.
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