DELAWARE – Greif, Inc. (NYSE: NYSE:, GEF.B), an industrial packaging products and services provider, announced increased quarterly cash dividends for its shareholders today. The company’s Board of Directors has declared a dividend of $0.54 per share on its Class A Common Stock and $0.81 per share on its Class B Common Stock.
Larry Hilsheimer, Executive Vice President and Chief Financial Officer of Greif, stated that the dividend increase aligns with the company’s capital allocation framework aimed at strong cash conversion and consistent enhancement of shareholder returns. He emphasized that dividends are a key element of the company’s strategy to create value for its stakeholders.
The increased dividends are part of the company’s “Build to Last Strategy,” which Hilsheimer says has demonstrated Greif’s ability to boost dividend yield while simultaneously investing in business growth for the future.
Stockholders of record as of the close of business on September 16, 2024, will be eligible to receive the dividends, which are payable on October 1, 2024.
Greif is known for producing a wide array of industrial packaging solutions, including steel, plastic, and fiber drums, intermediate bulk containers, and a variety of other packaging products. The company also operates in the paperboard and timber management sectors, employing over 14,000 individuals across more than 250 facilities in 37 countries. Greif’s mission is to be the best performing customer service company in the world, serving both global and regional markets.
The announcement is based on a press release statement from Greif, Inc.
In other recent news, Greif Inc. has reported strong results for its second fiscal quarter, leading to an upward revision of its guidance. The company’s Global Industrial Packaging (NYSE:) segment saw a significant volume increase, contributing an additional $27 million. Despite a year-over-year decline in the Paper Packaging & Services division, BofA Securities maintains a neutral rating on Greif’s stock. Wells Fargo also adjusted its price target for Greif, reflecting expectations for modest improvements in the company’s Fiscal Quarter 3 Global Industrial Packaging volumes. They also revised their earnings per share forecasts for Greif, setting the figures at $4.40 for Fiscal Year 2024 and $5.40 for Fiscal Year 2025. Greif also raised the lower end of its fiscal year earnings guidance from $610 million to $725 million and announced the operational launch of its Dallas sheetfeeder. These are among the recent developments for the company, which is also planning to expand its Intermediate Bulk Container network in the Asia-Pacific region.
InvestingPro Insights
As Greif, Inc. (NYSE: GEF, GEF.B) continues to reward its shareholders with increased dividends, a glance at the InvestingPro data reveals a solid financial foundation that supports this decision. The company boasts a market capitalization of approximately $2.99 billion, and its price-to-earnings (P/E) ratio stands at 11.56. This indicates that Greif is trading at a reasonable valuation relative to its earnings, with an adjusted P/E ratio for the last twelve months as of Q2 2024 even more attractive at 9.85.
InvestingPro Tips highlight that Greif has not only raised its dividend for 3 consecutive years but has also maintained dividend payments for 52 consecutive years, showcasing the company’s commitment to its shareholders. Additionally, the company’s valuation implies a strong free cash flow yield, reinforcing the sustainability of its dividend payments.
From a shareholder return perspective, Greif has delivered a strong return over the last five years. The company’s dividend yield as of the second quarter of 2024 stands at a healthy 3.27%, complemented by a 4.0% dividend growth in the same period. This consistency in rewarding investors is a testament to the company’s robust financial management and its “Build to Last Strategy.”
For those interested in a deeper dive into Greif’s financials and future prospects, InvestingPro offers additional tips and metrics to help investors make informed decisions. There are currently 7 more InvestingPro Tips available for Greif, which can be accessed via InvestingPro’s comprehensive platform.
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