Hamilton Beach Brands Holding (NYSE:HBB) Is Due To Pay A Dividend Of $0.12

Simply Wall St

Hamilton Beach Brands Holding Company's (NYSE:HBB) investors are due to receive a payment of $0.12 per share on 16th of September. Based on this payment, the dividend yield on the company's stock will be 3.2%, which is an attractive boost to shareholder returns.

Hamilton Beach Brands Holding's Future Dividend Projections Appear Well Covered By Earnings

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Based on the last payment, Hamilton Beach Brands Holding was paying only paying out a fraction of earnings, but the payment was a massive 445% of cash flows. A cash payout ratio this high could put the dividend under pressure and force the company to reduce it in the future if it were to run into tough times.

Looking forward, earnings per share could rise by 9.6% over the next year if the trend from the last few years continues. If the dividend continues on this path, the payout ratio could be 19% by next year, which we think can be pretty sustainable going forward.

NYSE:HBB Historic Dividend August 24th 2025

Check out our latest analysis for Hamilton Beach Brands Holding

Hamilton Beach Brands Holding Is Still Building Its Track Record

Even though the company has been paying a consistent dividend for a while, we would like to see a few more years before we feel comfortable relying on it. The annual payment during the last 8 years was $0.34 in 2017, and the most recent fiscal year payment was $0.48. This works out to be a compound annual growth rate (CAGR) of approximately 4.4% a year over that time. It's good to see at least some dividend growth. Yet with a relatively short dividend paying history, we wouldn't want to depend on this dividend too heavily.

We Could See Hamilton Beach Brands Holding's Dividend Growing

The company's investors will be pleased to have been receiving dividend income for some time. Hamilton Beach Brands Holding has impressed us by growing EPS at 9.6% per year over the past five years. Growth in EPS bodes well for the dividend, as does the low payout ratio that the company is currently reporting.

Our Thoughts On Hamilton Beach Brands Holding's Dividend

In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about Hamilton Beach Brands Holding's payments, as there could be some issues with sustaining them into the future. While Hamilton Beach Brands Holding is earning enough to cover the payments, the cash flows are lacking. We would probably look elsewhere for an income investment.

It's important to note that companies having a consistent dividend policy will generate greater investor confidence than those having an erratic one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For example, we've picked out 1 warning sign for Hamilton Beach Brands Holding that investors should know about before committing capital to this stock. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

Valuation is complex, but we're here to simplify it.

Discover if Hamilton Beach Brands Holding might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.