Covered, compounding — at a low payout. A 1.26% yield on a 16.06% trailing payout is covered many times over: $0.43 a quarter, raised from $0.40 in 2025, extending 7 years of increases. The payout leaves most earnings retained, so the dividend has ample headroom even though the current yield is modest for an income card.
Key risk: Federal-contract concentration — most revenue comes from U.S. government work, so contract losses, recompete failures, or budget shifts hit earnings directly.
Changes if: The trailing payout pushes well past 16.06%, or the dividend stops growing. Payout coverage is the tripwire here.
- ✓Payout-coverage check: 16.06% trailing payout ratio — covered many times over, with most earnings retained.
- ✓Yield check: 1.26% indicated — $0.43/qtr × 4 at the $136.08 close on Oct. 23, 2026. Real, earned yield, not a special or a return of capital.
- ✓Dividend growth check: 7 years of increases; the latest raise lifted the quarterly dividend from $0.40 to $0.43 in 2025.
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.