Sherwin-Williams’s 2019 second-quarter dividend
In a press release on April 17, Sherwin-Williams’s (SHW) board announced a regular cash dividend for the second quarter of 2019. To be eligible for this dividend, investors should hold SHW stock as of the close of May 17. The dividend will be paid on the number of outstanding shares as of that date.
For the second quarter, SHW declared a dividend of $1.13 per share, a ~31.4% increase year-over-year. However, there hasn’t been a change in the dividend rate over the previous quarter. SHW peers PPG Industries (PPG) and RPM International have paid second-quarter dividends of $0.48 and $0.35 per share, respectively, while Axalta (AXTA) hasn’t announced a dividend.
At the end of Q1 2019, SHW had outstanding shares of 91.95 million. Assuming there are no buybacks prior to record date, then SHW would spend ~$103.90 million to pay dividends.
Operating cash flow
Dividends are generally paid out of free cash flow. SHW defines free cash flow after deducting capital expenditures and cash dividends from net operating cash. Thus, SHW pays dividends from its net operating cash. Since 2012, SHW’s dividend has grown at a compound annual growth rate of 16.4%. In the past six years, SHW’s dividend payments have been in the range of 17%–23% of its net operating cash, and the company has still been able to generate positive free cash flow.
Investors seeking indirect exposure to Sherwin-Williams could consider the Materials Select Sector SPDR ETF (XLB), which had 4.6% exposure to Sherwin-Williams as of May 15.
On May 15, the US Census Bureau announced advance estimates for US retail and food service sales for April 2019.
After opening on a bearish note on Wednesday, Tesla (TSLA) was trading with 4.8% losses for the day, near $195.25 at 1:16 PM ET.
With voting conducted in seven phases panning six weeks, India’s (EPI) elections have been a grand affair—to say the least. Tomorrow is the day of the results.
Qualcomm (QCOM) stock fell more than 10% in the first half of trading on May 22 after it lost its licensing lawsuit with the US FTC (Federal Trade Commission).
Apple (AAPL) suffered a setback recently when the US Supreme Court allowed an antitrust lawsuit against the company to proceed.
Today doesn’t seem to be a good day for electric vehicle companies. Earlier today, NIO stock hit an all-time low of $4.00.
The cannabis sector has been struggling to find direction on May 22, with cannabis stocks trading on a largely mixed note in the first half.