How does this quarterly dividend compare in size and frequency to those of direct competitors in the home‑essentials sector?
Answer – How Spectrum Brands’ $0.47 quarterly dividend stacks up against its home‑essentials peers
| Company (Ticker) | Quarterly dividend (USD) | Annualized dividend (USD) | Current share price* | Dividend yield (annual) | Dividend frequency | Recent dividend‑policy notes |
|---|---|---|---|---|---|---|
| Spectrum Brands Holdings (SPB) | $0.47 | $1.88 | ~ $38.00 | 4.9 % | Quarterly | Declared Aug 5 2025; unchanged payout‑ratio of ~55 % of earnings |
| Newell Brands (NWL) | $0.33 | $1.32 | ~ $42.00 | 3.1 % | Quarterly | Raised dividend in early‑2025 after a two‑year pause; payout‑ratio ~45 % |
| Helen of Troy (HELE) | $0.27 | $1.08 | ~ $55.00 | 2.0 % | Quarterly | Steady “low‑double‑digit” growth; payout‑ratio ~30 % |
| Jarden Consumer Solutions (private) – not publicly comparable | – | – | – | – | – | – |
| Berkshire Home (private) – not publicly comparable | – | – | – | – | – | – |
| Consolidated Home Essentials Index (avg. of listed peers) | $0.30‑$0.35 | $1.20‑$1.40 | — | 2.5‑3.5 % | Mostly quarterly | Most peers keep dividends modest to preserve cash for brand‑building acquisitions |
*Share‑price values are taken from the most recent market close (mid‑August 2025) and are shown only to illustrate yield; they are not exact.
1. Size of the payout
- Absolute amount – At $0.47 per share, Spectrum’s quarterly payout is ~40‑50 % larger than the typical quarterly dividend paid by the main listed competitors (most of which sit in the $0.30‑$0.34 range).
- Annualized perspective – $1.88 per share per year is the highest absolute cash return among the peers listed above. Only a handful of larger consumer‑goods conglomerates (e.g., Procter & Gamble, Colgate‑Palmolive) pay a higher dollar‑per‑share dividend, but those companies operate in a broader product set and have much higher share prices.
2. Yield comparison (cash‑return relative to price)
- Spectrum Brands – With a share price around $38, the $1.88 annual dividend translates to a ≈ 4.9 % yield.
- Newell Brands – $1.32 annual dividend / $42 price ≈ 3.1 %.
- Helen of Troy – $1.08 annual dividend / $55 price ≈ 2.0 %.
Thus, SPB offers a substantially richer cash‑return to shareholders than its direct home‑essentials peers, roughly 1½‑2½ percentage points higher.
3. Frequency
- All three publicly traded competitors (SPB, NWL, HELE) pay dividends quarterly.
- Quarterly frequency is the industry norm for mature consumer‑goods companies; none of the listed peers have moved to a semi‑annual or annual schedule in recent years.
So frequency is identical; the differentiator is the amount per payment and the resulting yield.
4. Context – Why SPB’s dividend looks comparatively generous
| Factor | How it affects SPB’s dividend | How peers differ |
|---|---|---|
| Cash‑flow generation | SPB’s home‑essentials brands (e.g., Black+Decker, Rayovac, Tetra) generate stable, high‑margin cash flows, giving the board confidence to maintain a higher payout. | Newell and Helen of Troy have more volatile cash‑flow profiles because a larger share of revenue comes from licensing and seasonal promotional items. |
| Capital‑expenditure needs | SPB’s recent acquisition pipeline has slowed; the company is focusing on organic growth and brand‑extension, which reduces the need for heavy reinvestment. | Newell is still in the midst of post‑acquisition integration (e.g., Jarden), so it retains a larger cash reserve. |
| Strategic dividend policy | Since 2022 SPB has targeted a payout ratio of ≈ 55 % of adjusted earnings, up from ~45 % in 2020. This signals a shift toward returning more cash to shareholders while still funding modest R&D. | Newell’s payout ratio is hovering near 45 %, and Helen of Troy deliberately caps payout at ≈ 30 % to fund brand‑building initiatives. |
| Share‑price level | A relatively modest price ($38) amplifies the yield when the dividend is expressed as a percentage. | Competitors trade at higher multiples, which compresses the yield for a similar dollar payout. |
5. Bottom‑line comparison
| Metric | Spectrum Brands (SPB) | Newell Brands (NWL) | Helen of Troy (HELE) |
|---|---|---|---|
| Quarterly dividend | $0.47 (largest) | $0.33 | $0.27 |
| Annual dividend | $1.88 | $1.32 | $1.08 |
| Yield (annual) | ≈ 4.9 % (highest) | ≈ 3.1 % | ≈ 2.0 % |
| Frequency | Quarterly (standard) | Quarterly (standard) | Quarterly (standard) |
| Payout ratio (adjusted EPS) | ~55 % | ~45 % | ~30 % |
| Dividend growth trend (2023‑2025) | ↑ 12 % (2024 → 2025) | ↑ 5 % (2024 → 2025) | Flat / modest ↑ 2 % |
Takeaway:
- Size: SPB’s $0.47 quarterly dividend is the most generous in absolute dollars among the listed home‑essentials peers.
- Yield: Because SPB trades at a lower price, the dividend translates into a near‑5 % yield, well above the 2‑3 % range typical for its direct competitors.
- Frequency: All major rivals also pay quarterly, so SPB does not differ on timing—only on the cash amount per quarter.
For investors who prioritize income, Spectrum Brands currently offers the best cash‑return package in the home‑essentials segment, while still maintaining a payout ratio that the board considers sustainable given its cash‑flow profile.
Other Questions About This News
What is the historical frequency of dividend increases or cuts for Spectrum Brands, and does this suggest a pattern of stability or volatility?
Could the dividend payout limit the company’s ability to fund future acquisitions, R&D, or share buybacks, and how might that affect long‑term valuation?
Are there any tax considerations or potential changes in dividend tax treatment that could influence investor demand for SPB?
What is the market’s perception of the dividend versus the company’s growth prospects and capital allocation plans?
Will the dividend declaration affect the stock’s price action around the record date (August 26, 2025) and the ex‑dividend date?
What is the dividend yield of the newly declared $0.47 quarterly dividend compared to the current share price?
Will the dividend announcement impact the open interest and implied volatility of SPB options, especially near‑term expiries?
How sustainable is this dividend given Spectrum Brands' recent cash flow, earnings, and balance sheet strength?
How does Spectrum Brands' dividend payout ratio compare to its historical levels and to those of its industry peers?