The Eastman Chemical Company's EMN board has hiked its quarterly cash dividend by 15% to 46 cents per share on the company’s common stock. The revised dividend is payable on Jan 4, 2016 to stockholders of record as of Dec 14, 2015.
This is Eastman Chemical’s sixth straight year of dividend increase. The dividend hike represents the board’s confidence in the company’s continued earnings growth and strong cash flow.
Shares of the company rose roughly 3% to close at $73.31 last Friday.
Previously, Eastman Chemical had increased its quarterly cash dividend by 14% to 40 cents per share on the company’s common stock in Dec 2014.
Eastman Chemical’s profit jumped in third-quarter 2015, helped by contributions from acquisitions, cost-saving actions and higher volumes from its specialty businesses. Adjusted earnings topped the Zacks Consensus Estimate but sales missed expectations.
Eastman Chemical, in its third-quarter earnings call, said that it is well placed for sixth straight years of earnings growth. However, the company noted that it is facing challenges from a sluggish global economic environment, a stronger dollar and lower olefin prices.
Eastman Chemical’s diversified chemical portfolio, along with its integrated and diverse downstream businesses remain its strength. It is gaining from synergies of acquisitions, capacity additions and cost-cutting measures. The company remains committed to improve its cost position and boost productivity.
Eastman Chemical is a Zacks Rank #3 (Hold) stock.
Better-ranked companies in the chemical industry include Celanese Corp. CE, Innospec Inc. IOSP and The Dow Chemical Company DOW. While Celanese and Innospec sport a Zacks Rank #1 (Strong Buy), Dow holds a Zacks Rank #2 (Buy).
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