RICHMOND, Va. - NewMarket Corporation (NYSE: NEU) announced an increase in its quarterly dividend, raising the payout to $2.50 per share, up from the previous $2.25 per share. This change represents an approximately 11% hike in the dividend amount. The new dividend is set to be distributed on April 1, 2024, to shareholders who are on record as of March 15, 2024.
NewMarket, through its subsidiaries, including Afton Chemical Corporation, Ethyl Corporation, and American Pacific Corporation, operates in the production and distribution of chemical additives for petroleum products and specialty chemicals for the aerospace and defense industries. The company emphasizes its long-standing commitment to innovation, safety, and the well-being of its employees.
In its press release, NewMarket included forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995, cautioning that actual results could materially differ from current expectations. Factors that may influence these results include availability and cost of raw materials, production disruptions, industry competition, regulatory changes, significant customer relationships, workforce retention, IT security, and various risks associated with international operations and market conditions.
The company's management states that while they base their expectations on reasonable assumptions, there is no guarantee that the company's performance will align with these projections. The press release also notes that NewMarket does not intend to update forward-looking statements after the date of the release, except as required by law.
This dividend announcement is based on a press release statement from NewMarket Corporation.
InvestingPro Insights
Following NewMarket Corporation's (NYSE: NEU) announcement of their increased quarterly dividend, a closer look at the company's performance metrics provides a broader financial context. NewMarket's commitment to shareholder returns is reflected in its InvestingPro Tips, indicating a high shareholder yield and a track record of raising its dividend for 5 consecutive years. In fact, the company has maintained dividend payments for 18 consecutive years, showcasing its financial stability and dedication to its investors.
From a valuation standpoint, NewMarket is currently trading at a P/E ratio of 15.37, with an adjusted P/E ratio for the last twelve months as of Q4 2023 at 15.33. This relatively low P/E ratio compared to near-term earnings growth and a strong free cash flow yield suggests the stock may be undervalued. The company's stock also tends to exhibit low price volatility, adding a level of predictability for shareholders.
InvestingPro Data further highlights the company's financial health with a market capitalization of $5950M USD and a robust operating income margin of 19.28% for the last twelve months as of Q4 2023. The revenue may have seen a slight decline of 2.4% over the same period, but the company has demonstrated considerable strength in its returns, with a 1-year price total return of 84.0% and trading near its 52-week high, at 99.75% of that value.
For investors looking to delve deeper into NewMarket's financials and future prospects, additional InvestingPro Tips are available, including insights on the company's liquidity, profitability, and analyst predictions. To access these tips and make a more informed investment decision, visit https://www.investing.com/pro/NEU and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 15 additional tips listed in InvestingPro that could further guide investment strategies.
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