Sherwin-Williams’s dividend yield
As of the close of May 15, Sherwin-Williams’s dividend yield was at 1.04%. SHW’s dividend yield has shown signs of improvement since Q4 after seeing a continuous slide. In comparison, peers PPG Industries (PPG) and RPM International (RPM) have dividend yields of 1.63% and 2.3%, respectively, while Axalta (AXTA) has not distributed dividends.
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In comparison, SHW’s dividend yield is lower than its peers, but it is showing signs of improvement. SHW’s current dividend yield is lower than the yield generated by one-year Treasury bonds. As a result, SHW may not be an attractive option for long-term investors who look for higher dividend yields. To attract investors, SHW might have to increase its dividend yield more aggressively.
SHW’s dividend yield is showing signs of improvement
SHW’s dividend yield trend indicates that historically, its dividend yield has been on the lower side. It has remained below 1.0% for approximately two years. However, SHW increased its dividend in the first quarter by 31.4%. As a result, SHW’s dividend yield received a boost. On the other hand, the increase in SHW’s stock price had an adverse impact on dividend yield. On a year-to-date basis, SHW’s stock has gained 10.6%. If SHW’s stock price continues to gain, then SHW’s dividend yield could slide.
Investors seeking indirect exposure to Sherwin-Williams could consider the Vanguard Materials ETF (VAW), which had 4.6% exposure to Sherwin-Williams as of May 13.