CHICAGO - Oil-Dri Corporation of America (NYSE:ODC), a manufacturer and supplier of specialty sorbent products, has announced an increase in its quarterly cash dividends.
The company's Board of Directors declared dividends of $0.31 per share for Common Stock and $0.233 per share for Class B Stock, marking a 7% rise for both. This move represents the 21st consecutive year of dividend growth for Oil-Dri, which has been distributing cash dividends since 1974.
The increased dividend is attributed to the company's robust financial performance and its positive outlook on future growth. Historically, Oil-Dri has raised its quarterly cash dividend by $0.01 per share annually, but this year, the Board has approved a $0.02 per share increase.
Stockholders of record as of the close of business on August 9, 2024, will be eligible for the dividend payment, scheduled for August 23, 2024. Further details regarding Oil-Dri's performance will be shared after the U.S. stock market closes on Thursday, with an earnings discussion to follow via a live webcast on Friday at 10:00 a.m. Central Time.
Oil-Dri has a history of over 80 years in the industry, providing a range of sorbent products for various markets, including pet care, animal health, agriculture, and industrial applications. The company prides itself on its vertical integration, which allows for efficient oversight of all processes from research and development to marketing and sales.
The information is based on a press release statement from Oil-Dri Corporation of America. Investors are reminded that forward-looking statements are subject to risks, uncertainties, and assumptions that could affect actual results, as outlined in the company's most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.
In other recent news, Oil-Dri Corporation of America has announced a definitive agreement to acquire Ultra Pet Company, Inc., a supplier of silica gel-based crystal cat litter, for $46 million in cash. This acquisition, which is expected to close in the fourth fiscal quarter of 2024, is seen as a strategic move to enhance Oil-Dri's presence in the rapidly growing crystal cat litter market. Ultra Pet, known for its innovation in the cat litter market, generates annual net sales of approximately $24 million.
These developments follow Oil-Dri's recent earnings report, which highlighted record consolidated net sales for the second quarter of fiscal 2024, a notable 4% increase compared to the previous year. The company's growth has been driven by its fluids purification and cat litter products, leading to a significant 34% rise in consolidated gross profit, reaching $30.9 million. Oil-Dri's cash and cash equivalents also saw a year-over-year growth from $14 million to $27.8 million.
Despite facing economic challenges, Oil-Dri remains optimistic about its growth, particularly in the renewable diesel sector and international markets. The company's strategic investments and product innovations, such as the new antibacterial cat litter, are expected to contribute to sustained growth. Oil-Dri is also executing a 5-year capital plan to upgrade aging infrastructure, funded by gross margin expansion.
InvestingPro Insights
Oil-Dri Corporation of America's (NYSE:ODC) commitment to shareholder returns is further underscored by its impressive track record of dividend growth, now marking its 21st consecutive year. This consistency is reflected in the company's ability to raise its dividend for an exceptional 50 years, a testament to its financial resilience and prudent management.
The recent dividend increase is backed by a solid financial footing, as highlighted by Oil-Dri's current market capitalization of 605.92 million USD and a low price-to-earnings (P/E) ratio of 13.76, which is even more attractive considering the near-term earnings growth, with an adjusted P/E ratio of 13.18 for the last twelve months as of Q2 2024.
Investors eyeing growth will note Oil-Dri's revenue increase of 13.4% in the same period, signaling robust business performance. Moreover, the company's significant price appreciation over the last year, with a total return of 122.1%, aligns with the positive outlook presented by the increased dividend. The company's financial health is further evidenced by a PEG ratio of 0.11, suggesting that the stock may be undervalued relative to its earnings growth potential.
For a deeper dive into Oil-Dri's financial strengths and potential investment opportunities, there are additional InvestingPro Tips available at https://www.investing.com/pro/ODC. These tips include insights on the company's low earnings multiple, its capacity to cover interest payments comfortably, and the liquidity to meet short-term obligations. For those looking to enhance their investment strategy with these valuable insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. In total, there are 12 additional InvestingPro Tips that can help guide investment decisions regarding Oil-Dri Corporation of America.
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