Fortune Brands Innovations' (NYSE:FBIN) Upcoming Dividend Will Be Larger Than Last Year's

Fortune Brands Innovations, Inc. (NYSE:FBIN) will increase its dividend from last year's comparable payment on the 11th of March to $0.26. This will take the dividend yield to an attractive 2.0%, providing a nice boost to shareholder returns.AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Fortune Brands Innovations' Future Dividend Projections Appear Well Covered By Earnings Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Before making this announcement, Fortune Brands Innovations was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow. Over the next year, EPS is forecast to expand by 101.6%. If the dividend continues on this path, the payout ratio could be 19% by next year, which we think can be pretty sustainable going forward. NYSE:FBIN Historic Dividend December 16th 2025 See our latest analysis for Fortune Brands Innovations Dividend Volatility Although the company has a long dividend history, it has been cut at least once in the last 10 years. Since 2015, the annual payment back then was $0.56, compared to the most recent full-year payment of $1.04. This works out to be a compound annual growth rate (CAGR) of approximately 6.4% a year over that time. We have seen cuts in the past, so while the growth looks promising we would be a little bit cautious about its track record. Dividend Growth Is Doubtful Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. Over the past five years, it looks as though Fortune Brands Innovations' EPS has declined at around 5.2% a year. If earnings continue declining, the company may have to make the difficult choice of reducing the dividend or even stopping it completely - the opposite of dividend growth. However, the next year is actually looking up, with earnings set to rise. We would just wait until it becomes a pattern before getting too excited. Our Thoughts On Fortune Brands Innovations' Dividend Overall, we always like to see the dividend being raised, but we don't think Fortune Brands Innovations will make a great income stock. In the past, the payments have been unstable, but over the short term the dividend could be reliable, with the company generating enough cash to cover it. We don't think Fortune Brands Innovations is a great stock to add to your portfolio if income is your focus. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we've picked out 3 warning signs for Fortune Brands Innovations that investors should take into consideration. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech