About Cintas Corporation
Cintas Corporation is North America’s largest supplier of business uniforms and provides work clothes for more than 5 million people each day. The company’s heritage dates back to 1929, when Richard “Doc” Farmer set up a family business to reclaim and clean rags for local factories. More than 50 years later, in 1983, Cintas Corporation stock began trading publicly.
Cintas employs more than 30,000 people and operates nearly 400 facilities across North America. The company has more than 900,000 clients.
Cintas Corporation derives its revenue from several business lines, including apparel sales and rentals, fire protection services and equipment, and facility equipment services. In particular, the uniform sales segment includes cleanroom equipment for specialty applications such as the pharmaceutical, semiconductor, biotechnology and medical device manufacturing industries. Broadly speaking, fiscal year 2014 (from June 1st, 2013 – May 31st, 2014) revenues were divided across Rental Uniforms & Ancillary Products (71% of total FY14 revenues), Uniform Direct Sales (10%), First Aid, Safety and Fire Protection Services (11%), and Document Management Services (8%).
In Cintas’ 2014 fiscal year, the company recorded net income of $374.4 million, up 18.7% from the 2013 fiscal year. Revenues were $4.55 billion in the 2014 fiscal year, up 5.4% from the 2013 fiscal year.
The Corporation is a member of the S&P 500 index and trades under the ticker symbol CTAS.
Cintas Corporation’s Dividend and Stock Split History
Cintas has increased dividends since coming public in 1983 and met the Dividend Aristocrat criteria of 25 consecutive years of increasing regular dividend payments in 2007. Rather than distributing dividends quarterly, Cintas pays dividends once per year in December. In December 2013, Cintas announced a 20.3% dividend increase, from 64 cents to 77 cents per share. I expect Cintas to announce their next dividend increase next December.
Cintas has a good record of dividend increases. With the exception of six years in the period between 2003 and 2010, Cintas has increased its dividend payout by at least 10% and often more. The company’s 5-year compounded annual dividend growth rate (CADGR) is 10.85%, which is on par with its 10-year CADGR of 11.05%. Longer term, Cintas’ dividend growth rate is much better with a 20-year and 25-year CADGR of 15.04% and 17.25%.
Cintas stock has split 5 times since coming public in 1983. The company split its stock 2-for-1 in March 1987, April 1992 and November 1997. Cintas also split its stock 3-for-2 in April 1991 and most recently in March 2000. The company has not split its stock since 2000.
From mid-2009 to mid-2014, Cintas stock appreciated at an annualized rate of 26.2%, from about $20 to $64 over that time. This has outpaced the 14.3% annualized return of the S&P 500 during the same time.
Direct Purchase and Dividend Reinvestment Plans
Cintas Corporation does not have a direct purchase or dividend reinvestment plan. If you’re interested in investing in Cintas stock, you can do so through any broker. You can also automatically reinvest dividends through most brokers. Contact your broker directly for more information.