High yield, payout over reported earnings. A 5.79% yield looks generous, and the dividend was raised in July 2026 from $1.24 to $1.25 a quarter, but the $5.00 indicated annual dividend exceeds reported trailing EPS of about $4.81 — a payout over 100% of reported earnings — and the share price is down about 25% over the past year, so the yield is partly a falling price.
Key risk: Sluggish category demand, input costs, and a CEO search underway — plus GOJO integration — could keep earnings soft while the payout stays above reported earnings.
Changes if: Reported earnings stay below the $5.00 indicated dividend for another year, or the annual increase is skipped. Either would move this card from warn toward failing.
- !Payout-coverage check: About 104% of reported trailing EPS of about $4.81 — $5.00 indicated against $4.81 earned. The dividend was still raised in 2026, but reported earnings do not cover it; the case rests on adjusted earnings and cash flow, which this card does not verify.
- !Yield check: 5.79% indicated — $1.25/qtr × 4 at the $86.40 close on Oct. 23, 2026. Real and recurring, but inflated by a share price down about 25% over the past year.
- ✓Dividend growth check: Raised in July 2026 from $1.24 to $1.25 a quarter, continuing the company's long history of annual dividend increases, per its own announcement.
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.