Lamb Weston (LW) Rewards Investors With a Dividend Hike
Lamb Weston Holdings, Inc. LW is focused on enhancing shareholders’ returns. The leading global provider of frozen potato products company hiked its quarterly dividend by 29% from the prior rate.
The company will pay a quarterly dividend of 36 cents per share. The hiked dividend is payable on Mar 1, 2024, to shareholders record as of Feb 2, 2024. Lamb Weston currently has a dividend payout of 20% and a dividend yield of 1.1%.
During the first quarter of fiscal 2024, management paid out dividends worth $41 million. The company also repurchased 992,365 shares for $100 million. Well, dividend payouts and share buybacks are the biggest enticements for investors. LW is committed to boosting shareholders’ value.
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What Else Should You Know?
Lamb Weston’s sturdy balance sheet and capacity to generate cash keep it well-placed to boost production capacity and fuel long-term growth. The company’s efforts to expand offerings and capacity enable it to meet rising demand conditions for snacks and fries effectively.
Capital expenditures amounted to nearly $305 million thanks to construction costs in the first quarter of fiscal 2024. Management is on track to expand its processing capacity in China, Idaho, Argentina, and the Netherlands. For fiscal 2024, the company expects cash to be used for capital expenditures in the $800-$900 million band.
The company’s global manufacturing footprint, with cutting-edge production capabilities, is yielding. Its global supply chain optimization initiatives and disciplined capital allocation strategy have created a more profitable and high-growth business. Management’s focus on innovations creates opportunities to drive growth and widen the total addressable market.
Wrapping Up
Lamb Weston continues to reap benefits from a compelling pricing scenario and a solid operating momentum. The company’s focus on improving supply chain productivity and global expansion efforts have been a primary growth driver.
The Zacks Rank #2 (Buy) company’s shares have increased 7.3% in the past three months compared with the industry’s 0.7% growth.
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MGP Ingredients, Inc. (MGPI) : Free Stock Analysis Report
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