Lubrizol Corporation

Lubrizol Corporation (LZ - Analyst Report) recently declared a dividend of 31 cents per share, noting that it is payable September 10 to shareholders of record at the close of business on August 10. The company boasts an industry-leading yield of 3%.

Company Description

Lubrizol Corporation makes chemical that are used for improving the quality and performance of products used in the global transportation, industrial and consumer markets.

This involves production of lubricant additives for engine oils, other transportation-related fluids and industrial lubricants, as well as fuel additives for gasoline and diesel fuel. Lubrizol also makes ingredients and additives for personal care products and pharmaceuticals.

The company describes its products as ones that enhance the quality, performance and value of its customers' products while reducing their environmental impact.

Lubrizol is headquartered in Wickliffe, Ohio. The company owns and operates manufacturing facilities in 19 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 6,800 employees worldwide. Revenues for 2008 were $5.0 billion.

Rewarding Shareholders with Industry-leading Income

The company recently declared a dividend of 31 cents per share, noting that it is payable September 10 to shareholders of record at the close of business on August 10. The company boasts a dividend yield of 3%, which is well ahead of the industry average.

First Quarter Results

Lubrizol announced first-quarter earnings of $1.06 per share in late April. The result was slightly below the previous year’s $1.10 but in line with the consensus estimate.

The company upped its earnings guidance and analysts followed suit. Brokerage analysts increased full-year earnings forecasts from $4.25 to $4.27 per share in just the past week. Estimates stood at $3.77 per share 3 months ago. The most accurate 2009 estimate is much higher at $4.38.

For 2010, Wall Street is projection earnings of $4.70 per share, above last week’s $4.69 and the 3 months-ago level of $4.28.

Lubrizol offers strong fundamentals, including a return on equity (ROE) of 15%, which nearly doubles the industry average of 8%.