DALLAS - Celanese Corporation (NYSE: NYSE:CE), a global chemical and specialty materials company, announced today that it will pay a quarterly cash dividend of $0.70 per share on its common stock. The dividend will be distributed on August 12, 2024, to shareholders of record as of July 30, 2024.
The declaration follows Celanese's performance in the previous year, where the company reported net sales of $10.9 billion. Celanese, recognized as a Fortune 500 entity, operates across various industries, providing specialty material solutions. The company emphasizes sustainable practices and the lifecycle management of the materials it produces, aligning with growing societal and customer expectations for responsible business conduct.
Celanese employs roughly 12,400 people worldwide, leveraging its expertise in chemistry and technology to deliver value to customers and stakeholders. While the press release statement from Celanese highlights its commitment to community impact and team inclusivity, the focus of this announcement remains on the upcoming dividend payment to its shareholders.
This financial move is part of the company's regular distribution of profits to its investors and reflects its ongoing financial strategy. Shareholders looking to receive this dividend must be on the company's books by the end of July.
The information provided here is based on a press release statement from Celanese Corporation.
In other recent news, Celanese Corporation is facing significant production challenges due to supply chain disruptions, leading to a 15-20% reduction in second-quarter production of acetic acid and vinyl acetate monomer. Despite these challenges, Celanese maintains its fiscal year 2024 guidance, with an EPS forecast of $11-12 and a second-quarter guidance set at $2.60-3.00 EPS.
Several analyst firms, including KeyBanc, Wells Fargo (NYSE:WFC), Jefferies, Deutsche Bank (ETR:DBKGn), and BofA Securities, have adjusted their price targets for Celanese, citing concerns over increased unit costs, reduced margins, and weak demand. Meanwhile, BMO Capital Markets, RBC Capital, and Baird have raised their price targets, reflecting their expectations of the company's resilience and potential for growth despite current challenges. These recent developments highlight the impact of supply chain disruptions on production and the varied outlooks of analyst firms on Celanese's future performance.
InvestingPro Insights
Celanese Corporation's recent announcement of its upcoming dividend payment underscores its consistent shareholder returns. Notably, the company has a commendable track record of raising its dividend for 14 consecutive years, signaling a stable and shareholder-friendly policy. This is supported by a high shareholder yield, which is a key metric for income-focused investors.
In terms of valuation, Celanese is currently trading at a P/E ratio of 7.98, which suggests that the stock is trading at an attractive price relative to its near-term earnings growth. This low P/E ratio, coupled with a strong free cash flow yield implied by the company's valuation, presents a potentially compelling opportunity for value investors. Moreover, the company has demonstrated significant return over the last week, with a 9.52% price total return, further highlighting the positive momentum in the stock's performance.
Investors considering Celanese as part of their portfolio may also benefit from additional insights available on InvestingPro. With more tips like these, such as insights into earnings revisions and stock volatility, InvestingPro offers a deeper dive into the company's financial health and market position. For those interested, there are 20 additional InvestingPro Tips available, which can be accessed with an exclusive offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
InvestingPro Data further complements these insights with key metrics such as a market cap of $15.89 billion and a solid dividend yield of 1.9%. These figures, along with a robust revenue growth of 7.11% over the last twelve months as of Q1 2024, affirm Celanese's financial stability and its ability to sustain dividend payments to shareholders. The company's next earnings date is set for August 1, 2024, which will provide investors with an updated glimpse into its financial trajectory.
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