Stepan said on April 25, 2023 that its board of directors declared a regular quarterly dividend of $0.36 per share ($1.46 annualized). Previously, the company paid $0.36 per share.
Shares must be purchased before the ex-div date of May 30, 2023 to qualify for the dividend. Shareholders of record as of May 31, 2023 will receive the payment on June 15, 2023.
At the current share price of $89.37 / share, the stock's dividend yield is 1.63%. Looking back five years and taking a sample every week, the average dividend yield has been 1.15%, the lowest has been 0.89%, and the highest has been 1.54%. The standard deviation of yields is 0.15 (n=236).
The current dividend yield is 3.34 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.27. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.33%, demonstrating that it has increased its dividend over time.
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What is the Fund Sentiment?
There are 501 funds or institutions reporting positions in Stepan. This is an increase of 2 owner(s) or 0.40% in the last quarter. Average portfolio weight of all funds dedicated to SCL is 0.18%, an increase of 10.03%. Total shares owned by institutions increased in the last three months by 0.56% to 19,411K shares. 
The put/call ratio of SCL is 0.51, indicating a bullish outlook.
Analyst Price Forecast Suggests 47.23% Upside
As of April 24, 2023, the average one-year price target for Stepan is 131.58. The forecasts range from a low of 130.29 to a high of $135.45. The average price target represents an increase of 47.23% from its latest reported closing price of 89.37.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Stepan is 2,811MM, an increase of 2.24%. The projected annual non-GAAP EPS is 7.14.
What are Other Shareholders Doing?
HighTower Advisors holds 1,994K shares representing 8.94% ownership of the company. In it's prior filing, the firm reported owning 1,991K shares, representing an increase of 0.16%. The firm decreased its portfolio allocation in SCL by 2.86% over the last quarter.
IJR - iShares Core S&P Small-Cap ETF holds 1,565K shares representing 7.01% ownership of the company. In it's prior filing, the firm reported owning 1,551K shares, representing an increase of 0.86%. The firm increased its portfolio allocation in SCL by 4.29% over the last quarter.
SDY - SPDR(R) S&P(R) Dividend ETF holds 896K shares representing 4.02% ownership of the company. In it's prior filing, the firm reported owning 878K shares, representing an increase of 2.05%. The firm decreased its portfolio allocation in SCL by 0.51% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 655K shares representing 2.93% ownership of the company. In it's prior filing, the firm reported owning 646K shares, representing an increase of 1.30%. The firm increased its portfolio allocation in SCL by 6.34% over the last quarter.
Westwood Holdings Group holds 554K shares representing 2.48% ownership of the company. In it's prior filing, the firm reported owning 549K shares, representing an increase of 0.95%. The firm decreased its portfolio allocation in SCL by 14.51% over the last quarter.
Stepan Background Information
(This description is provided by the company.)
Stepan Company is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries. Stepan is a leading merchant producer of surfactants, which are the key ingredients in consumer and industrial cleaning and disinfection products and in agricultural and oilfield solutions. The Company is also a leading supplier of polyurethane polyols used in the expanding thermal insulation market, and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
