ST. PAUL, Minn. - H.B. Fuller Company (NYSE: FUL), a leading global adhesives provider, has declared an 8.5% increase in its regular quarterly cash dividend. The new dividend of $0.2225 per share of common stock is scheduled to be paid on May 9, 2024, to shareholders on record as of April 25, 2024.
This move extends the company's impressive track record to 55 years of consecutive annual dividend increases, underscoring its commitment to delivering shareholder value.
H.B. Fuller, founded in 1887, specializes in the production of a wide range of adhesives, sealants, and other specialty chemical products. With a workforce of over 7,000 employees, the company operates globally, serving customers in more than 30 market segments across 140 countries. In 2023, H.B. Fuller reported revenues of $3.5 billion, reinforcing its position as the world's largest pure-play adhesives company.
Investors may view this dividend increase as a positive indicator of H.B. Fuller's financial health and its ability to generate consistent cash flows.
The information is based on a press release statement from the company.
InvestingPro Insights
H.B. Fuller's recent declaration of an increased quarterly cash dividend is a reflection of its long-standing policy of returning value to its shareholders. The company's commitment to its dividend is evidenced by its remarkable history of maintaining and raising dividend payments for 55 consecutive years. This consistency aligns with one of the InvestingPro Tips highlighting that H.B. Fuller has raised its dividend for 31 consecutive years and has maintained dividend payments for 54 consecutive years. This is a testament to the company's stable financial performance and prudent capital management strategies.
From a valuation perspective, another InvestingPro Tip suggests that the company's valuation implies a strong free cash flow yield. This indicates that the stock may be undervalued relative to the cash flows it's generating, which could be attractive to value-oriented investors. Moreover, the company's ability to sustain profitability is underscored by the analysts' prediction that H.B. Fuller will be profitable this year, a sentiment backed by its profitability over the last twelve months.
Looking at the InvestingPro Data, H.B. Fuller shows a solid market capitalization of $4.22 billion, and while the P/E ratio stands at 27.22, it adjusts to a more attractive 23.91 when considering the last twelve months as of Q1 2024. This adjustment suggests a potentially more favorable valuation for investors considering the company's earnings in a more recent context. Additionally, the dividend yield as of early 2024 is 1.05%, which, combined with a 7.89% dividend growth in the last twelve months, may appeal to income-focused investors.
For those interested in a more in-depth analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/FUL. Readers looking to access these insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of financial data and expert analysis to inform their investment decisions.
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