Paint and coating manufacturer Valspar (NYSE: VAL), as per its habit, is raising its quarterly dividend. The company announced Thursday that its next distribution will be $0.37 per share, 12% higher than its predecessor. This is the 39th year in a row Valspar has increased its distribution. By doing so, it maintains its status as a dividend aristocrat, one of the very few companies that has lifted its payout at least once annually for a minimum of 25 straight years.
Valspar is the latest in a series of aristocrats to improve its distribution so far this month. Industrial conglomerate Emerson Electric made a 1% bump in its payout to $0.48 per share, and on Wednesday, food service specialist Sysco trumpeted a 7% increase.
Valspar will soon cease to be an independent company, it is being taken over by longtime rival Sherwin Williams (NYSE: SHW), which itself is a dividend aristocrat. Given that Sherwin Williams also prioritizes its payout, we can safely assume that current Valspar shareholders will continue to enjoy the frequent improvements that they’re used to.
Valspar’s new dividend will be handed out on Dec. 15 to stockholders of record as of Dec. 1. The company’s most recent closing share price was $101.32, so the upcoming payout would yield about 1.5%. That’s below the current 2.1% average of dividend-paying stocks on the S&P 500, but it does beat parent-to-be Sherwin Williams’ current yield of 1.3%.
However, it’s lower than those of its recently raising aristocrat peers. Emerson Electric pays out at 3.4%, while Sysco’s current yield is 2.3%.
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Eric Volkman has no position in any stocks mentioned.
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