The Sherwin-Williams Company (NYSE:SHW) Declares Quarterly Dividend of $0.80

Key Points

• $0.80 quarterly dividend declared, payable June 5 to shareholders of record May 22, implying an annualized dividend of $3.20 and a yield of about 1.0%.
• The company has raised its dividend every year for the last 48 years and maintains a payout ratio around 24%, indicating the dividend is well covered by earnings (analysts forecast roughly $13.42 EPS next year).
• Sherwin‑Williams recently beat quarterly EPS estimates ($2.23 vs. $2.16), reported 5.6% year‑over‑year revenue growth, and trades near $335 with a P/E of about 32.6.

The Sherwin-Williams Company (NYSE:SHW - Get Free Report) announced a quarterly dividend on Wednesday, April 22nd. Shareholders of record on Friday, May 22nd will be paid a dividend of 0.80 per share by the specialty chemicals company on Friday, June 5th. This represents a c) annualized dividend and a yield of 1.0%. The ex-dividend date is Friday, May 22nd.

Sherwin-Williams has increased its dividend by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 48 years. Sherwin-Williams has a payout ratio of 24.1% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Sherwin-Williams to earn $13.42 per share next year, which means the company should continue to be able to cover its $3.20 annual dividend with an expected future payout ratio of 23.8%.

Sherwin-Williams Price Performance

Shares of SHW opened at $334.74 on Thursday. Sherwin-Williams has a fifty-two week low of $301.58 and a fifty-two week high of $379.65. The company has a debt-to-equity ratio of 2.03, a quick ratio of 0.53 and a current ratio of 0.87. The company has a market capitalization of $82.80 billion, a P/E ratio of 32.59, a P/E/G ratio of 2.91 and a beta of 1.27. The business's 50-day moving average is $335.79 and its two-hundred day moving average is $338.31.

Sherwin-Williams (NYSE:SHW - Get Free Report) last posted its earnings results on Thursday, January 29th. The specialty chemicals company reported $2.23 EPS for the quarter, beating analysts' consensus estimates of $2.16 by $0.07. Sherwin-Williams had a return on equity of 65.26% and a net margin of 10.90%.The firm had revenue of $5.60 billion for the quarter, compared to analysts' expectations of $5.57 billion. During the same period last year, the firm earned $2.09 EPS. The company's quarterly revenue was up 5.6% on a year-over-year basis. Research analysts predict that Sherwin-Williams will post 11.84 earnings per share for the current year.

Insider Activity

In related news, insider Colin M. Davie sold 2,976 shares of Sherwin-Williams stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $359.50, for a total value of $1,069,872.00. Following the sale, the insider directly owned 5,365 shares in the company, valued at approximately $1,928,717.50. The trade was a 35.68% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, SVP Bryan J. Young sold 2,513 shares of Sherwin-Williams stock in a transaction dated Tuesday, February 24th. The stock was sold at an average price of $364.47, for a total value of $915,913.11. Following the completion of the sale, the senior vice president owned 10,045 shares in the company, valued at approximately $3,661,101.15. The trade was a 20.01% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.23% of the company's stock.

Institutional Investors Weigh In On Sherwin-Williams

Institutional investors have recently bought and sold shares of the company. Ares Financial Consulting LLC acquired a new stake in Sherwin-Williams in the 4th quarter worth about $27,000. Lloyd Advisory Services LLC. acquired a new stake in Sherwin-Williams in the 4th quarter worth about $27,000. Kemnay Advisory Services Inc. acquired a new stake in Sherwin-Williams in the 4th quarter worth about $30,000. Lodestone Wealth Management LLC acquired a new stake in Sherwin-Williams in the 4th quarter worth about $31,000. Finally, Rossby Financial LCC lifted its stake in Sherwin-Williams by 96.0% in the 3rd quarter. Rossby Financial LCC now owns 98 shares of the specialty chemicals company's stock worth $33,000 after purchasing an additional 48 shares in the last quarter. 77.67% of the stock is currently owned by institutional investors and hedge funds.

About Sherwin-Williams

Sherwin-Williams NYSE: SHW is a global manufacturer and distributor of paints, coatings and related products. Founded in 1866 and headquartered in Cleveland, Ohio, the company supplies a broad range of coatings for residential, commercial and industrial applications. Its product offering includes architectural paints and stains, industrial and protective coatings, automotive finishes, and a variety of sundry products such as primers, sealants and specialty treatments used by professionals and consumers.

The company sells through multiple channels, including a large network of company-operated retail paint stores that serve professional contractors and do-it-yourself consumers, as well as through distributors and mass retailers.

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