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Sherwin-Williams Sweetened Its Cash Dividend on February 14

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Sherwin-Williams raises cash dividend

On February 14, 2018, Sherwin Williams (SHW) announced a quarterly dividend for 1Q18. SHW declared a dividend of $0.86 per share, an increase of ~1.2% on a year-over-year basis. 

Investors who hold SHW stock as of February 26, 2018, are eligible to receive the dividend. SHW is expected to pay the dividend on March 9, 2018. SHW has increased its annual cash dividend for 39 consecutive years.

On February 16, 2018, SHW’s current dividend yield stood at 0.86%. SHW’s peers PPG Industries (PPG) and RPM International (RPM) had current dividend yields of ~1.6% and 2.5%, respectively. Axalta (AXTA) doesn’t have a dividend yield, as it doesn’t pay any dividends. 

SHW’s current dividend yield is low compared to its peers. It’s also lower than the yields generated from one-year Treasury bonds. 

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Stock price updates

Sherwin-Williams (SHW) gained 0.9% and closed at $402.30 for the week ended February 16, 2018. It underperformed the PowerShares DWA Industrials Momentum Portfolio ETF (PRN), which gained 5.0% for the same period. The fund invests 5.9% of its portfolio in Sherwin-Williams. 

SHW traded marginally above the 100-day moving average price of $399.81, indicating the stock’s upward trend. SHW’s short interest as a percentage of outstanding shares has been on the rise from 1.0% at the end of December 2017 to 1.7% at the end of January 2018. SHW’s relative strength index (or RSI) of 45 indicates that the stock is neither overbought nor oversold.

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