Griffon Corporation (NYSE:GFF) shareholders are looking forward to the upcoming ex-dividend date on November 27th, as the company prepares to pay out dividends on December 14th. Those interested in receiving a dividend of $0.15 per share should own the stock before the ex-dividend date. With the current share price at $46.25, this represents an annual yield of 5.6%.
The company's ability to sustain its dividends appears strong, with a moderate payout ratio of just 30% and minimal cash flow usage at 6.6%. The ex-dividend date is a key cutoff for investors, as it determines their eligibility to receive the company's dividends.
In addition to the dividend announcement, Griffon has shown significant earnings growth, which is essential for maintaining and potentially increasing dividend payments. The company's earnings per share (EPS) have seen an impressive annual increase of 14%, with more than half of the profits being reinvested back into the business. This strategy indicates a potential for further earnings and dividend growth.
Supporting this outlook is Griffon's remarkable average annual dividend growth rate of 39% over the past decade, highlighting its strong commitment to providing shareholder returns.
InvestingPro Insights
As Griffon Corporation (NYSE:GFF) gears up to pay out dividends, it's worth noting that the company not only has a history of raising its dividend for 4 consecutive years but also pays a significant dividend to shareholders with a current yield of 5.62%. This commitment to returning value to shareholders is further underscored by management's aggressive share buybacks, as highlighted by InvestingPro Tips.
From a financial strength perspective, Griffon's liquid assets surpass its short-term obligations, providing a stable foundation for sustaining dividend payments. The company's market capitalization stands at $2.32 billion, and it has maintained a relatively low P/E ratio of 11.9 based on the last twelve months as of Q4 2023, which indicates that it is trading at a low valuation relative to near-term earnings growth.
Investors looking for additional insights will find a wealth of InvestingPro Tips related to Griffon Corporation, including the company's high return on invested capital and its performance metrics such as the strong return over the last month. For those interested in a deeper dive, the InvestingPro platform offers many more tips, and with the special Black Friday sale now in effect, subscribers can enjoy a discount of up to 55% on their membership.
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