Westlake (WLK) Announces 40% Hike in Quarterly Dividend
Westlake Corporation WLK has announced a regular dividend distribution of 50.00 cents per share for the second quarter of 2023, an increase of around 40% from 35.70 cents for the first quarter of 2023. This dividend will be paid out on Sep 12, 2023, to stockholders of record as of Aug 25, 2023.
This marks the 76th straight quarterly dividend announced by Westlake since its initial public offering in August 2004.
The substantial rise in the company's dividend reflects its solid cash-generating model as its strong growth continues. In addition, the company's conservatively positioned, strong investment grade balance sheet allows a significantly higher dividend level while continuing to provide the company with substantial capacity to invest to achieve long-term shareholder return.
Westlake ended the second quarter with cash and cash equivalents of $2,677 million, up around 103% year over year. Net cash provided by operating activities was $555 million in the quarter.
Shares of WLK have gained 22.4% over the past year compared with 13.6% rise of its industry.
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Westlake, on its second-quarter call, noted that it will focus on improving controllable costs and commercializing innovation in the Performance and Essential Materials unit in the remainder of 2023. For the Housing and Infrastructure Products segment, the company believes that its diverse portfolio of products with varied price points will allow it to help its customers address homebuyer affordability concerns through the substitution of materials.
Westlake Corp. Price and Consensus
Westlake Corp. price-consensus-chart | Westlake Corp. Quote
Zacks Rank & Key Picks
Westlake currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Denison Mine Corp. DNN and Veritiv Corporation VRTV.
Capenter Technology currently carries a Zacks Rank #1 (Strong Buy). The stock has rallied roughly 48.7% in the past year. CRS beat the Zacks Consensus Estimate in three of the last four quarters while meeting in one. It delivered a trailing four-quarter earnings surprise of 9.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Denison Mines currently carries a Zacks Rank #1. The stock has gained roughly 14.6% in the past year. DNN beat the Zacks Consensus Estimate in three of the last four quarters while meeting once. It delivered a trailing four-quarter earnings surprise of 75%, on average.
Veritiv currently carries a Zacks Rank #2 (Buy). The stock has rallied roughly 21.9% in the past year. VRTV beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6%, on average.
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