Dynamic Materials: Dividends in Lean Times

Dynamic Materials (BOOM) is switching to a quarterly payout from an annual dividend, declaring the first quarterly dividend of $0.04. The payout has not been increased, but we expect more frequent payment could create interest among investors who are looking for a combination of dividends and growth.

The current yield for BOOM shares is 0.8%. The announcement should serve as a catalyst for the stock, albeit a weak one, since the decision to pay quarterly provides some assurance that management has looked down the business pipeline and decided the dividend is secure.

We continue to suggest investors approach BOOM shares with caution at the current price level. Economic conditions appear to be improving, but we continue to have concerns that industry and enterprise have many more lean months ahead.

Disclosure: Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein. Crystal Equity Research has a Hold rating on BOOM shares.

Comments

[David Van K...:]

Good grief. A 0.8% dividend yield is no reason for anyone to buy any stock. And the rest of the "article" offers no reasons to buy it either. This is pretty useless.

Jun 17 09:51 AM

[BigOlDave:]

There are lots of fundamentals, and even some financials, to support ownership of BOOM. But dividend sure isn't a reason to decide for/against BOOM. I agree with David Van K: this is a pretty useless piece. Why not give it another try.

An interesting change of dividend policy has happened with CALM. That would be of interest to readers.

Dave

Jun 17 02:42 PM