NORTHBROOK, Ill. - Stepan Company (NYSE: NYSE:SCL), a leading manufacturer of specialty chemicals, announced today that its Board of Directors has declared a quarterly cash dividend of $0.375 per share on the company's common stock. This dividend is payable on June 14, 2024, to shareholders of record as of May 31, 2024.
This recent declaration reflects an increase from the previous quarter's dividend, marking a $0.010 per share rise. The adjustment continues Stepan Company's long-standing practice of increasing its cash dividend, with this year being the 56th consecutive year of such growth for the company's stockholders.
Stepan Company has established itself as a significant player in the production of specialty and intermediate chemicals, catering to a wide range of industries. The company is notably a leading merchant producer of surfactants, essential components in consumer and industrial cleaning, disinfection products, as well as agricultural and oilfield solutions. Additionally, Stepan is recognized as a principal supplier of polyurethane polyols, which are increasingly used in the thermal insulation market, and in the CASE (Coatings, Adhesives, Sealants, and Elastomers) industries.
With headquarters in Northbrook, Illinois, Stepan operates a network of modern production facilities across North and South America, Europe, and Asia. Its common stock is publicly traded on the New York Stock Exchange under the ticker symbol SCL.
InvestingPro Insights
As Stepan Company (NYSE: SCL) commits to its 56th consecutive year of dividend growth, a hallmark of its shareholder value proposition, investors may be intrigued by the company's financial health and stock performance. According to real-time data from InvestingPro, Stepan Company boasts a market capitalization of $1.89 billion, reflecting its substantial presence in the specialty chemicals industry.
InvestingPro Data reveals a Price to Earnings (P/E) Ratio of 47.41, which adjusts to 39.37 when considering the last twelve months as of Q4 2023. This high earnings multiple suggests that investors are willing to pay a premium for Stepan's shares, potentially due to its consistent dividend growth and stable market position. Despite a challenging economic environment, the company has managed to maintain a Gross Profit Margin of 11.94% during the same period, although this figure indicates weaker gross profit margins compared to industry peers.
Looking at stock performance, Stepan Company's shares are currently trading at 83.86% of their 52-week high, with a recent closing price of $83.98. The dividend yield stands at 1.77%, with a modest growth of 2.74% in the last twelve months as of Q4 2023. These figures are complemented by an InvestingPro Tip highlighting that the stock generally trades with low price volatility, which may appeal to investors seeking stability in their portfolios.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available, including insights on the company's profitability and valuation multiples. Specifically, analysts predict Stepan will be profitable this year, and the company has been profitable over the last twelve months. Also, Stepan is trading at a high EBIT valuation multiple. To explore these insights further, consider visiting https://www.investing.com/pro/SCL and take advantage of the exclusive offer using coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription. In total, there are more InvestingPro Tips available on the site, offering a comprehensive view of Stepan Company's financial status and investment potential.
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