Discover the companies in the materials sector that increased their dividends significantly last quarter, Q2 FY 2023
Dividends
July 17, 2023
Commercial Metals Company (CMC) recently reported strong financial results for its fiscal third quarter of 2023, with net earnings of $234.0 million, or $1.98 per diluted share, representing a 30% increase from the previous quarter. Commercial Metals's North America segment experienced growth in adjusted EBITDA and saw increased bid volumes, indicating continued strength in the construction pipeline. Additionally, the operational startup of the Arizona 2 micro mill is underway, which is expected to contribute to earnings and cash flow growth. As a result of the positive performance and promising prospects, CMC's board of directors announced a 14% increase in the quarterly dividend to $0.16 per share of common stock, marking the 235th consecutive quarterly payment.
CMC's strong financial results can be attributed to robust North American construction activity, favorable product margins in the domestic market, and ongoing cost reduction efforts. Commercial Metals has benefited from significant structural trends such as the re-shoring of manufacturing and logistical supply chains and increased investment in infrastructure and energy markets. These trends are expected to drive demand for rebar-intensive construction sectors in the coming quarters and years. Furthermore, the progress made on the commissioning of the Arizona 2 project and other strategic initiatives positions CMC for significant earnings and cash flow growth, creating value for shareholders.
Despite some challenges in the European market, CMC's North America segment demonstrated resilience and achieved year-over-year growth in adjusted EBITDA for the tenth consecutive quarter. Shipment volumes remained stable, and although the average selling price for steel products decreased, downstream products experienced an increase. In contrast, the Europe segment faced softer market conditions, leading to a decline in adjusted EBITDA due to lower margins over scrap, higher energy costs, and reduced shipment volumes.
Commercial Metals Company is a global leader in the manufacturing, recycling, and fabrication of steel and metal products. With operations spanning multiple countries including the United States, Poland, China, and Germany, Commercial Metals specializes in processing and selling ferrous and nonferrous scrap metals to various industries. They also produce and distribute a wide range of finished long steel products, such as rebar and merchant bar, and provide fabricated steel products for construction projects. Additionally, Commercial Metals Company offers construction-related products and equipment, as well as specialty steel products for the truck trailer industry and military vehicles. Established in 1915, Commercial Metals is headquartered in Irving, Texas.
Ashland Inc. recently announced a 15 percent increase in its quarterly cash dividend, with the new amount set at $0.385 cents per share. The decision to raise the dividend reflects Ashland's commitment to providing consistent dividend growth and rewarding its shareholders. Ashland aims to achieve an annual dividend payout ratio of approximately 30 percent of adjusted income from continuing operations. This commitment was communicated during Ashland's Investor Day in November 2021.
Guillermo Novo, the chair and chief executive officer of Ashland, expressed Ashland's confidence in its long-term, profitable growth strategy. The increased dividend and the implementation of a new 10b5-1 trading plan agreement, which allows Ashland to repurchase up to $100 million of its outstanding shares, demonstrate the board of directors' belief in the company's ability to generate consistent earnings and cash flow. Over the past three years, Ashland has returned approximately $950 million to its shareholders, highlighting the company's commitment to delivering value through disciplined capital allocation.
Ashland Global Holdings Inc. is a worldwide provider of specialty chemical solutions. Through its Specialty Ingredients segment, Ashland offers a wide range of products and technologies to address formulation and product-performance challenges. Their solutions utilize various natural and synthetic polymers derived from cellulose ethers, vinyl pyrrolidones, acrylic polymers, polyesters, polyurethane-based adhesives, as well as plant and seed extracts. Serving industries such as pharmaceuticals, personal care products, food and beverages, nutraceuticals and supplements, paint and coatings, construction materials, packaging, converting, and oilfield services, Ashland Global Holdings Inc. meets diverse market needs. Additionally, its Intermediates and Solvents division produces 1,4 butanediol and related derivatives, including n-methylpyrrolidone, which serve as chemical intermediates for engineering polymers and polyurethanes. They also provide specialty process solvents used in electronics, pharmaceuticals, water filtration membranes, and other applications. Originally known as Ashland Inc., the company changed its name to Ashland Global Holdings Inc. in September 2016. Founded in 1924, the company is headquartered in Covington, Kentucky.
Methanex Corporation recently announced a 6% increase in its quarterly dividend, raising it to US$0.185 per share from US$0.175 per share. This decision reflects company's commitment to providing value to its shareholders. Methanex is a leading global supplier of methanol, a key chemical used in various industrial applications.
Methanex's dividend increase may be influenced by recent positive developments in the industry. Methanol is gaining prominence as a low-carbon and versatile fuel source, particularly in the transportation sector. Governments worldwide are implementing policies to reduce carbon emissions, leading to increased demand for methanol as an alternative fuel. Methanex, with its strong market position and extensive production capabilities, is well-positioned to benefit from this trend.
Methanex Corporation produces and supplies methanol in North America, the Asia Pacific, Europe, and South America. It also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, company owns and leases storage and terminal facilities. It owns and manages a fleet of approximately 30 ocean-going vessels. company serves chemical and petrochemical producers. Methanex Corporation was founded in 1968 and is headquartered in Vancouver, Canada.
Worthington Industries, Inc. recently announced an increase in its quarterly dividend by $0.01 per share, representing a 3% growth from the previous quarter. This dividend increase demonstrates Worthington Industries's commitment to rewarding its shareholders and its consistent track record of dividend growth, spanning over 13 years. Worthington, a publicly traded company since 1968, has a strong history of paying dividends, and this latest move further strengthens its position as a reliable investment choice.
The decision to raise the dividend signifies Worthington Industries's confidence in its financial performance and future prospects. Worthington Industries has likely experienced positive developments, such as robust earnings, strong cash flow generation, or favorable market conditions, which have allowed it to enhance shareholder returns through increased dividends.
Worthington Industries, Inc. is a leading metals manufacturing company that specializes in value-added steel processing and the production of metal products. With operations in multiple countries, including the United States, Austria, Canada, Mexico, Poland, and Portugal, Worthington Industries is divided into two segments: Steel Processing and Pressure Cylinders. The Steel Processing segment caters to various industries such as automotive, aerospace, construction, and more, by processing flat-rolled steel and offering toll processing services. The Pressure Cylinders segment manufactures and sells a wide range of pressure cylinders, tanks, and related products for industrial, consumer, and oil and gas applications. Founded in 1955 and headquartered in Columbus, Ohio, Worthington Industries has established itself as a prominent player in the metal manufacturing sector.
Innospec Inc. recently reported its financial results for the first quarter of 2023, showing positive growth and performance. Innospec declared a semi-annual dividend of 69 cents per common share for the first half of the year, marking a 10 percent increase. This dividend will be paid on May 31, 2023, to shareholders of record on May 22, 2023.
During the first quarter, Innospec experienced an 8 percent increase in total revenues, reaching $509.6 million compared to $472.4 million in the same period last year. Net income for the quarter was $33.2 million or $1.33 per diluted share. Although net income decreased slightly from the previous year, Innospec's adjusted non-GAAP EPS was $1.38 per diluted share, excluding special items.
Several factors contributed to Innospec's dividend increase and positive financial results. Innospec benefited from its balanced business portfolio, with growth and margin expansion in the Oilfield Services segment offsetting volume and margin headwinds in Performance Chemicals. Furthermore, Innospec anticipates sequential volume and margin improvement in Performance Chemicals in the coming quarters, along with new personal care contracts scheduled for the third quarter.
Innospec Inc. is a global company specializing in the development, manufacturing, blending, marketing, and supply of specialty chemicals. With four distinct segments, including Fuel Specialties, Performance Chemicals, Oilfield Services, and Octane Additives, Innospec offers a wide range of products used in various industries. The Fuel Specialties segment provides additives for automotive, marine, and aviation engines, as well as power generators and heating oil. The Performance Chemicals segment offers technology-based solutions for personal care, home care, agrochemical, and metal extraction markets. In the Oilfield Services segment, Innospec develops products for drilling, fracturing, stimulation, and oil and gas production. Lastly, the Octane Additives segment produces tetra ethyl lead (TEL) for automotive gasoline and is involved in environmental remediation efforts. Innospec serves clients in oil and gas, fuel manufacturing, personal care, home care, agrochemical, and industrial sectors. Founded in 1938 as Octel Corp. and headquartered in Englewood, Colorado, Innospec changed its name to Innospec Inc. in 2006.
NewMarket Corporation has announced an increase in its quarterly dividend on common stock to $2.25 per share, up from $2.10 per share. The decision reflects NewMarket's commitment to rewarding shareholders and its confidence in its financial performance. NewMarket, with its subsidiaries Afton Chemical Corporation and Ethyl Corporation, specializes in developing, manufacturing, and delivering chemical additives that enhance petroleum product performance. These additives play a vital role in improving engine efficiency, extending machinery lifespan, and promoting cleaner fuel combustion.
NewMarket Corporation is a leading provider of petroleum additives, serving various industries globally. Their subsidiary companies specialize in lubricant additives for vehicles and industrial applications, including engine oils, transmission fluids, hydraulic systems, and more. They also offer engine oil additives, driveline additives, industrial additives, and fuel additives to enhance the performance of gasoline, diesel, biofuels, and other fuels. With a history dating back to 1887, NewMarket Corporation operates in multiple regions, including the United States, Europe, Asia Pacific, India, Latin America, Canada, Africa, and the Middle East, providing quality products to industry, government, OEMs, and individual customers. Headquartered in Richmond, Virginia, NewMarket has diversified operations, including antiknock compounds and contracted manufacturing and services.
Materion Corporation recently made an exciting announcement regarding its first-quarter 2023 dividend. Materion's Board of Directors has approved a dividend increase of approximately 5%, equivalent to $0.005 per share of common stock. This move showcases Materion's commitment to delivering value to its shareholders and reflects its strong financial performance.
Materion Corporation is a leading manufacturer and global supplier of advanced engineered materials used in various industries, including semiconductor, aerospace and defense, automotive, energy, consumer electronics, and telecom. Materion operates through three segments: Performance Alloys and Composites, Advanced Materials, and Precision Coatings. Its product offerings range from copper and nickel products to beryllium composites, ceramics, and precision thin film coatings. Materion distributes its products worldwide through company-owned facilities, independent distributors, and agents. With a rich history dating back to 1931, Materion has established itself as an industry leader, continually innovating and collaborating with partners like Kairos Power to develop materials for advanced reactor technology. Headquartered in Mayfield Heights, Ohio, Materion was formerly known as Brush Engineered Materials Inc. before rebranding as Materion Corporation in 2011.
LyondellBasell has recently announced a 5 percent increase in its quarterly dividend, raising it to $1.25 per share. This decision reflects LyondellBasell's commitment to providing strong returns to its shareholders and marks the 13th consecutive year of annual dividend growth.
The increase in dividend payout is in line with LyondellBasell's long-term objective of returning 70 percent of its free cash flow to shareholders, as shared during its Capital Markets Day. By consistently increasing its dividend, LyondellBasell aims to demonstrate its dedication to delivering value to its investors and ensuring their satisfaction.
This dividend increase also comes as LyondellBasell continues to focus on establishing its leadership in developing sustainable solutions for everyday living. LyondellBasell's CEO, Peter Vanacker, emphasized their balanced approach to capital deployment, further indicating their commitment to long-term growth and sustainability.
All data was sourced from LevelFields AI
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