This article originally appeared on The DIV-Net May 4, 2009.
Linked here is a detailed quantitative analysis of Brady Corp (BRC). Below are some highlights from the above linked analysis:
Company Description: Brady Corp is an international manufacturer and marketer of solutions that identify and protect premises, products and people. Products include labels and signs, safety devices, printing systems and software, and precision die-cut materials.
Fair Value: I consider four calculations of fair value, see page 2 of the linked PDF for a detailed description:
- Avg. High Yield Price
- 20-Year DCF Price
- Avg. P/E Price
- Graham Number
BRC is trading at a discount to 1.), 2.) and 3.) above. If I exclude the high and low valuations and average the remaining two, BRC is trading at a 29.6% discount. BRC earned a Star in this section since it is trading at a fair value.
Dividend Analytical Data: In this section I consider five factors, see page 2 of the linked PDF for a detailed description:
- Rolling 4-yr Div. > 15%
- Dividend Growth Rate
- Years of Div. Growth
- 1-Yr. > 5-Yr Growth
- Payout 15% of avg.
BRC earned two Stars in this section for 3.) and 4.) above. BRC has paid a cash dividend to shareholders every year since 1984 and has increased its dividend payments for 24 consecutive years. Its one year dividend growth rate exceeded its 5-year growth rate. This could indicate the growth rate is accelerating.
Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA)? This section compares the earning ability of this stock with a high yield MMA.
