Kronos Worldwide: Dividend Trends By The Numbers Post Q1 Earnings Release

Individual Trader
17.84K Followers
(7min)

Summary

  • Kronos' dividend cut and persistent negative free cash flow highlight ongoing financial strain, with no clear catalysts for improvement on the horizon.
  • Dividend yield is now just 2.99%, lagging behind safer alternatives like US Treasuries, with long-term dividend growth rates remaining negative, eroding investor confidence.
  • KRO's rising debt and declining earnings estimates increase risk, as high interest expenses further constrain both dividend and reinvestment potential.
  • Dividend discount model suggests shares are fairly valued near $7.87, but bearish earnings trends and high leverage justify maintaining a 'Hold' rating.

Titanium periodic table element, mining, science, nature, innovation, chemical elements used in physics and other sciences

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Intro

We last wrote on Kronos Worldwide, Inc. (NYSE:KRO) in January of last year when we recommended the titanium dioxide-related firm cut the dividend due to the absence of a positive corresponding payout ratio. Dividend

This article was written by

17.84K Followers
Individual investor with a keen interest in deriving income from investment setups. We do this by buying undervalued profitable stocks with strong balance sheets & minimal debt. Furthermore, when the opportunity arises, we like to write calls against our positions to bring in additional income. Risk management is controlled through position sizing & the use of trailing stop losses over time.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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