Olin Corp's Dividend Analysis
An In-Depth Look at Olin Corp's Upcoming Dividend and Historical Performance
Olin Corp(NYSE:OLN) recently announced a dividend of $0.2 per share, payable on 2024-03-15, with the ex-dividend date set for 2024-03-06. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Olin Corp's dividend performance and assess its sustainability.
What Does Olin Corp Do?
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Olin Corp manufactures and sells a variety of chemicals and chemical-based products. The company organizes itself into three segments based on the product type. The Chlor alkali products and Vinyls segment, which generates the majority of revenue, sells chlorine and caustic soda, which are used in a variety of industries including cosmetics, textiles, crop protection, and fire protection products. The Epoxy segment sells epoxy resins used in paints and coatings. The Winchester segment sells sporting ammunition and ammunition accessories under the Winchester brand. The majority of revenue comes from the United States.
A Glimpse at Olin Corp's Dividend History
Olin Corp has maintained a consistent dividend payment record since 1985, distributing dividends on a quarterly basis. Olin Corp has increased its dividend each year since 2000. The stock is thus listed as a dividend achiever, a distinction awarded to companies that have raised their dividend annually for at least the past 24 years. Below is a chart showing the annual Dividends Per Share for tracking historical trends.
Breaking Down Olin Corp's Dividend Yield and Growth
As of today, Olin Corp currently has a 12-month trailing dividend yield of 1.45% and a 12-month forward dividend yield of 1.45%, suggesting an expectation of consistent dividend payments over the next 12 months. Additionally, based on Olin Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Olin Corp stock as of today is approximately 1.45%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Olin Corp's dividend payout ratio is 0.19.
Olin Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Olin Corp's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 6 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Olin Corp's growth rank of 6 out of 10 suggests that the company has a fair growth outlook. Revenue is the lifeblood of any company, and Olin Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Olin Corp's revenue has increased by approximately 13.30% per year on average, a rate that outperforms approximately 62.19% of global competitors.
Concluding Thoughts on Olin Corp's Dividends
Considering Olin Corp's stable dividend payments, consistent growth in dividend per share, modest payout ratio, fair profitability, and solid revenue growth, the company's dividends appear to be on a sustainable path. While past performance is a useful indicator, investors should also consider the broader economic environment, industry trends, and the company's strategic position when evaluating the future prospects of Olin Corp's dividends. For those seeking to find more high-dividend yield opportunities, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
