W.R. Grace declares a quarterly dividend
On October 24, W.R. Grace (GRA) announced its regular quarterly dividend. GRA declared a dividend of $0.24 per share, implying dividend growth of 14.30% on a year-over-year basis.
To benefit from this dividend, investors should hold GRA shares by the close of trading on November 14. Grace is expected to pay the dividend on December 5.
At the end of the third quarter, Grace had 67.20 million common shares outstanding. If Grace doesn’t buy back any shares, it will be paying a dividend of $16.12 million.
GRA stock reported strong third-quarter earnings results, beating analysts’ estimate on both the top and bottom lines. This performance resulted in GRA rising 1.4% for the week and closing at $65.64. Despite its gains, GRA was trading 8.2% below its 100-day moving average price of $71.50, indicating prevailing weakness in its stock.
Year-to-date, GRA has fallen 6.4%. However, analysts project an upside for GRA and have recommended a target price of $83.1, which implies a potential return of 26.6% based on its October 26 closing price. GRA’s 14-day relative strength index of 39 suggests that the stock is neither overbought nor oversold.
Investors can indirectly hold GRA by investing in the iShares U.S. Basic Materials ETF (IYM), which has invested 0.7% of its portfolio in GRA. The fund also has exposure to DowDuPont (DWDP), Praxair (PX), and LyondellBasell (LYB) at weights of 19.9%, 7.9%, and 4.7%, respectively, as of October 26.