Berry Global (BERY) Rewards Shareholders With 10% Dividend Hike
In a shareholder-friendly move, Berry Global Group BERY has raised its quarterly dividend by 10% to 27.5 cents per share (annually: $1.10). The move underscores the company’s sound financial health as it utilizes free cash flow to enhance shareholders’ returns.
The new dividend will be paid to shareholders on Dec 15, 2023, of record as of Dec 1, 2023. The dividend yield, based on the new payout and its Nov 17 closing price, is 1.7%.
Berry Global follows a balanced capital allocation strategy. It utilizes its cash flow for paying out dividends, repurchasing shares and acquiring businesses. In fiscal 2023, BERY paid out dividends of $127 million and repurchased 6.9 million shares for approximately $601 million. In February 2022, the company announced a $1 billion share buyback program, which is expected to remain operational over the next two to three fiscal years.
Berry Global Group, Inc. Price
Berry Global Group, Inc. price | Berry Global Group, Inc. Quote
As for acquisitions, in June 2023, Berry Global acquired Pro-Western Plastics, boosting its container business in North America, particularly in the dairy, industrial and medical sectors.
BERY recently reported fourth-quarter fiscal 2023 results, wherein the company’s adjusted earnings of $2.28 per share surpassed the Zacks Consensus Estimate of $2.13. The bottom line increased 4.1% year over year.
Net sales of $3,087 million missed the Zacks Consensus Estimate of $3,171 million. The top line decreased 9.8% year over year due to a 3% dip in volumes and lower selling prices. Reduced demand in the consumer and industrial markets led to the volume decline.
Zacks Rank & Key Picks
Berry Global carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks within the broader Industrial Products sector are as follows:
A. O. Smith Corporation AOS presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 14%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
A. O. Smith has an estimated earnings growth rate of 20.1% and 6.1% for 2023 and 2024, respectively. Shares of the company have gained 33.4% in the year-to-date period.
ITT ITT presently carries a Zacks Rank #2. The company pulled off a trailing four-quarter earnings surprise of 8%, on average.
ITT has an estimated earnings growth rate of 16.7% and 11.2% for 2023 and 2024, respectively. Shares of the company have gained 33.3% in the year-to-date period.
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