Newell Brands Inc. (NWL) Reduces Quarterly Dividend to $0.07 per Share in Latest Announcement
May 16, 2023
Newell Brands Inc. (NWL) made an important announcement today regarding its dividend policy. The company's Board of Directors, in collaboration with the management team, has decided to update the dividend policy, resulting in a reduction of the quarterly dividend to $0.07 per share, implying an annual dividend of $0.28 per share. As part of this adjustment, Newell Brands also declared a quarterly cash dividend of $0.07 per share. The dividend is set to be paid on June 15, 2023, to common stockholders of record as of May 31, 2023.
Over the past few months, Newell Brands' management team has been engaged in a comprehensive evaluation of the company's corporate strategy. This assessment has involved a thorough analysis of Newell Brands' competitive position in the industry and an updated and integrated approach to identifying strategic opportunities for growth. Additionally, the evaluation has focused on assessing the talent, culture, and capital allocation priorities necessary to support the strategy refresh.
Despite the dividend reduction, Newell Brands management remains optimistic about the company's cash flow performance in 2023. They expect a strong rebound and believe in the business's cash flow generation potential. The decision to reset the capital allocation priorities and right-size the dividend is driven by a desire to fund internal supply chain consolidation investments that offer high returns. Furthermore, this adjustment enables faster de-leveraging of the balance sheet and provides Newell Brands with increased financial flexibility.
Today's update to Newell Brands' dividend policy is in line with the broader strategy refresh undertaken by the company's management. The dividend will continue to be a priority going forward, as it remains an integral part of Newell Brands' capital allocation framework. The company plans to provide additional details about the strategy refresh in the coming months, allowing investors and stakeholders to gain a deeper understanding of the path ahead.
Members of LevelFields received the alert of this event on May 16, 8:50 AM ET
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