PolyOne increased its dividend
On October 11, PolyOne (POL) declared its quarterly cash dividend. The press release said that PolyOne would pay a dividend of $0.195 per share. On an annual basis, the dividend will be $0.78 per share. The dividend rate represents 11% growth over the previous year. PolyOne’s annual dividend increased for the seventh consecutive year.
To be eligible for the dividend, investors should hold PolyOne shares as of December 14 in the company’s record. PolyOne is expected to pay the dividend on January 9, 2019. The company announced that it plans to increase its dividend 60% by 2020. So far, PolyOne appears to be on target.
Robert M. Patterson, PolyOne’s chairman, president, and CEO, said, “One year ago, we announced a plan to increase our dividend by more than 60% by 2020, and we are pleased to be delivering on our commitment, as our dividend has now increased by 44% over the last two years.”
Stock price update
Last week, PolyOne stock suffered during a week that US markets witnessed a sell-off. The stock declined 13.3% and closed at $36.20. As a result, the stock traded 16.3% below the 100-day moving average price of $43.26, which indicates prevailing weakness in the stock. However, investors need to be cautious. PolyOne’s 14-day RSI (relative strength index) is at 14, which implies that the stock has temporarily moved into an “oversold” position. An RSI of 30 and below indicates that the stock is oversold.
Investors could hold PolyOne indirectly by investing in the Invesco DWA Basic Materials Momentum ETF (PYZ). PYZ has invested 1.6% of its portfolio in PolyOne as of October 12.