HANOVER, Pa. - Utz Brands, Inc. (NYSE: UTZ), a prominent manufacturer of branded salty snacks in the United States, has announced an increment in its annual dividend. The company's Board of Directors approved a raise from $0.228 to $0.236 per share, effective today.
A regular quarterly cash dividend of approximately $0.059 per share on the company's Class A Common Stock has also been declared by the Board. Stockholders of record by April 15, 2024, are slated to receive the payment on May 2, 2024.
The dividend will be financed through cash distributions from Utz Brands Holdings, LLC to Utz and the other holders of common units on a pro-rata basis.
While the company has indicated this increase, it also noted that future dividend declarations are contingent upon the Board's discretion. The Board will consider the company's operational results, financial health, and other relevant factors before making such decisions.
Utz Brands, with a century-long family heritage, offers a variety of savory snacks under well-known brands including Utz®, ON THE BORDER® Chips & Dips, and Golden Flake®, among others. The company distributes its products nationwide via multiple channels such as grocery stores, mass merchandisers, and convenience stores. Utz operates several manufacturing facilities across the United States to meet customer demand.
The announcement includes forward-looking statements subject to risks and uncertainties, and actual company results could materially differ from what has been projected.
This update on Utz Brands, Inc.'s financial activities is based on a press release statement from the company.
InvestingPro Insights
Following the announcement of Utz Brands, Inc.'s (NYSE: UTZ) dividend increase, investors may find additional context in the company's financial metrics and market performance. According to InvestingPro data, Utz holds a market capitalization of approximately $2.59 billion, indicating its significant presence in the snack food industry.
Despite a challenging market environment, Utz has demonstrated a commitment to shareholder returns, raising its dividend for four consecutive years—a testament to its financial management and an InvestingPro Tip highlighting the company's reliability in rewarding investors.
Meanwhile, the company's latest revenue figures stand at $1.44 billion for the last twelve months as of Q4 2023, with a gross profit margin of 31.62%, showcasing its ability to maintain profitability in its operations.
InvestingPro Tips also reveal that analysts expect Utz to become profitable this year, which could be a promising sign for investors considering the company's recent negative P/E Ratio of -59.71. This anticipated turnaround in profitability, coupled with a significant price uptick of 35.56% over the last six months, may suggest investor confidence in the company's growth trajectory.
For those looking to delve deeper into Utz Brands' financials and future prospects, InvestingPro offers additional insights and tips. There are currently 6 more tips listed on InvestingPro for Utz Brands, which can be accessed at https://www.investing.com/pro/UTZ. Interested readers and investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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