It is in a cyclical business so earnings could fluctuate, however, the strong balance sheet and powerful brand combined with low payout ratio gives the dividend a significant margin of safety. (scottsinvestments.com)
Lower payout ratios mean safer dividends, and high payout ratios mean that the dividends have a high probability of being cut. (financialcanadian.com)
It is in a cyclical business so earnings could fluctuate, however, the strong balance sheet and powerful brand combined with low payout ratio gives the dividend a significant margin of safety. (scottsinvestments.com)