Oil-Dri Corporation of America (NYSE:ODC) Has Affirmed Its Dividend Of $0.29
Oil-Dri Corporation of America, a company listed on the New York Stock Exchange under the ticker symbol ODC, has declared a forthcoming dividend of $0.29 per share. Shareholders will receive this payment on the 25th of August. However, it should be noted that the dividend yield of 1.9% falls below the industry average.
Although the dividend yield holds significance for those seeking income, it is crucial to take into account substantial fluctuations in the stock price, as these tend to overshadow any profits gained from distributions. Shareholders would undoubtedly be delighted to observe a remarkable 49% surge in the stock price of Oil-Dri Corporation of America within the past three months, which not only benefits them but might also justify a decline in the dividend yield.
Take a look at our most recent examination of Oil-Dri Corporation of America.
Strong Earnings Secure Oil-Dri's Dividend
Even a small return on dividends can be appealing if it continues consistently over a long period. Nevertheless, Oil-Dri Corporation of America has sufficient earnings to provide the dividend. Consequently, the majority of the company's profits are being reinvested to support its expansion.
In the future, there is a potential for a 27.7% increase in earnings per share within the next year if the pattern from the previous years persists. Assuming the dividend maintains its recent pattern, we predict that the payout ratio will be 29%, falling within a range that assures us of the dividend's sustainability.
Oil-Dri Corporation: A Reliable History
The company has a long-standing tradition of giving consistent dividends. In 2013, the yearly payment was $0.72, and in the latest fiscal year, it was $1.16. This shows that the company's dividends have been increasing by an average of 4.9% each year. Although the company's dedication to paying dividends consistently is commendable, we believe that the rate of growth is relatively sluggish and less appealing.
Probable Dividend Growth
Shareholders who have owned stocks in the company for the past few years will be pleased with the money they have earned from dividends. We are pleased to note that Oil-Dri Corporation of America has experienced a consistent annual growth of 28% in their earnings per share over the past five years. Earnings per share are increasing at a significant rate, and the ratio of dividends paid compared to earnings is low, which we believe is a perfect balance for a dividend stock. This indicates that the company can easily increase the dividend payments in the future.
Oil-Dri Corp's Dividend: Our Fondness
In general, we believe that this is an excellent source of income investment, and we believe that the decision to preserve the dividend this year might have been a cautious one. Profits are adequately meeting the distributions, and the company is producing a substantial amount of money. Taking all these aspects into account, we firmly believe that this holds strong promise as a stock with regular dividend payments.
Investors typically prefer companies that have a reliable and steady dividend policy rather than ones that have an inconsistent one. However, there are additional factors that investors should take into account when evaluating stock performance. Are the company's management team confident in their ability to achieve good results? You can find out by examining their ownership of shares in Oil-Dri Corporation of America in our latest analysis of insider ownership. If you are someone who invests in dividends, you may also be interested in our carefully selected list of stocks that offer high yield dividends.
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This blog post from Simply Wall St is broad in scope. We offer opinions based on past information and predictions from experts, using a fair approach. Our articles are not meant to be financial guidance. They do not suggest purchasing or selling stocks, and they do not consider your goals or financial standing. Our goal is to provide you with thorough analysis centered on fundamental data for the long term. Please note that our analysis may not include the most recent market-moving company announcements or subjective material. Simply Wall St does not hold any positions in the stocks mentioned.
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