Covered, compounding — income-light. A 1.17% yield on a 39.5% payout is covered and steadily growing: $0.3075 a quarter, raised 4.2% in January 2026 for the 30th consecutive year (company release, Jan. 30, 2026). Low current income, strong compounding record.
Key risk: Acquisition and tariff pressure — growth leans on bought brands (Touchland in 2025) and consumer-staples margins face tariff and input-cost pressure, which showed up in 2026 results commentary.
Changes if: The payout pushes past about 60%, or the 30-year increase streak breaks.
- ✓Payout-coverage check: 39.5% of earnings per StockAnalysis — comfortably covered, with room for the acquisition-led growth the company prioritises alongside the dividend.
- ✓Yield check: 1.17% indicated — $0.3075/qtr × 4 at the $105.19 close on Oct. 23, 2026. Low, but real and earned.
- ✓Dividend growth check: 30th consecutive year of increases, per the company's Jan. 30, 2026 release; the latest raise lifted the quarterly rate 4.2%, from $0.295 to $0.3075, and the company has paid a quarterly dividend for 125 consecutive years.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.