Tennant Company (NYSE:TNC) Looks Like A Good Stock, And It's Going Ex-Dividend Soon
It looks like Tennant Company (NYSE:TNC) is about to go ex-dividend in the next four days, and with its trailing yield of around 1.4% on a current share price of US$86.86, this could be an attractive opportunity for investors seeking stable income. The company's payout ratio of 25% and modest cash outflows suggest that the dividend is sustainable, at least in the short term. However, long-term sustainability will depend on Tennant's ability to maintain its growth trajectory.
- A key indicator of a company's dividend health is its payout ratio, and while Tennant's 25% payout ratio appears manageable, it's essential to consider whether the company can continue to generate sufficient cash flows to support this level of distribution.
- As Tennant's earnings per share continue to grow at 12% a year for the past five years, investors will be eager to know how the company plans to balance dividend growth with its growth strategy in the coming years.