U.S. Markets close in 2 hrs 55 mins

Valvoline (VVV) Announces Quarterly Dividend Increase of 40%

Valvoline Inc. VVV recently announced that the board of directors has approved a quarterly cash dividend hike of more than 40% on its common stock.

Post issuance of the new rate, the dividend will be 10.6 cents per share. The hiked dividend is payable Dec 17, 2018, to shareholders on record as of Nov 30, 2018. This initiative will enable the company to retain investors’ confidence in the stock.

Lexington, KY-based Valvoline is a renowned manufacturer and retailer of automotive and engine maintenance services and products. The company is poised to grow on the back of solid segmental performance and efficient capital-deployment moves.

However, in the past three months shares of this Zacks Rank #4 (Sell) company have lost 7.2% compared with the industry’s decline of 4.3%. Also, its recent earnings streak has failed to impress investors. Notably, it has a dismal earnings surprise history with no beats, over the trailing four quarters.

Also, analysts have become increasingly bearish on Valvoline. In the past couple of months, the Zacks Consensus Estimate for fiscal 2019 earnings has trended down from $1.49 to $1.39 owing to five downward estimate revisions versus none upward.

Stocks to Consider

Some better-ranked stocks in the same space are Ashland Global Holdings Inc. ASH, DAQO New Energy Corp. DQ and Celanese Corporation CE. While Ashland Global Holdings and DAQO New Energy sport a Zacks Rank #1 (Strong Buy), Celanese carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ashland Global Holdings surpassed estimates twice in the trailing four quarters, the average beat being 8.19%.

DAQO New Energy surpassed estimates thrice in the trailing four quarters, the average beat being 15.27%.

Celanese exceeded estimates in each of the trailing four quarters, the average beat being 13.29%.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Celanese Corporation (CE) : Free Stock Analysis Report
 
Ashland Global Holdings Inc. (ASH) : Free Stock Analysis Report
 
DAQO New Energy Corp. (DQ) : Free Stock Analysis Report
 
Valvoline Inc. (VVV) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research