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Sherwin-Williams Hikes Dividend

Zacks Equity Research

The Sherwin-Williams Company (SHW) announced that it has hiked its quarterly dividend by 10% to 55 cents per share from the previous payout of 50 cents per share. The dividend is payable on Mar 14, 2014, to shareholders of record as of Mar 3, 2014.

In Feb 2013, the company increased its quarterly dividend by 28% to 50 cents per share from 39 cents.

Sherwin-Williams remains committed to deliver incremental returns to shareholders. The company returned over 90% of its net operating cash flow to its shareholders in 2013 through dividends and share repurchases.

Last month, Sherwin-Williams released its fourth-quarter 2013 results. The company saw its profit jump in the quarter on gains across its Paint Stores Group and Consumer Group divisions, but its earnings trailed expectations.  

The company’s profit, as reported, shot up roughly 71% year over year to $116.1 million or $1.14 per share in the quarter from $68.1 million or 65 cents a year ago.

Barring charges associated with early retirement of debt, earnings of $1.16 per share, however, missed the Zacks Consensus Estimate of $1.27.

Sherwin-Williams recorded net sales of around $2,457 million in the quarter, up roughly 11% year over year. It exceeded the Zacks Consensus Estimate of $2,419 million.

Increased paint sales volume of Sherwin-Williams’ Paint Stores Group and favorable impact of acquisitions led to higher sales in the quarter. Acquisitions contributed 4.6% to the rise in revenues in the quarter while currency swings had an unfavorable impact of 1.1%.

Sherwin-Williams, which is among the leading paint companies along with PPG Industries Inc. (PPG), currently carries a Zacks Rank #3 (Hold).

Other companies in the paint industry worth considering are RPM International Inc. (RPM) and The Valspar Corp. (VAL), both retaining a Zacks Rank #2 (Buy).

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Read the Full Research Report on PPG
Read the Full Research Report on VAL
Read the Full Research Report on RPM

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