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UFP Industries (UFPI) Hikes Dividend, Boosts Investors' Value
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UFP Industries, Inc. (UFPI - Free Report) announced a hike of 10% in its quarterly cash dividend from the December 2023 dividend and a 32% raise over the March 2023 quarterly dividend. This move marks the 12th consecutive year of dividend increase by the company.
This wood and materials provider for the construction industry raised the quarterly dividend payout to 33 cents per share from 30 cents paid in December 2023 and from 25 cents paid in March 2023. The amount will be paid on Mar 15, 2024, to shareholders of record as of Mar 1. Based on the closing price of $112.63 per share on Feb 5, 2024, the stock has a dividend yield of 1.18%.
This move highlights the company’s stable financial position and its commitment to reward shareholders regularly. The uptick in dividends underscores UFP Industries' robust and unwavering performance, underscored by its confidence in its growth strategies. Leveraging its solid cash flow, the company not only fuels investments aimed at further amplifying UFP Industries' growth trajectory but also extends its success by distributing dividends.
Enhancement of Shareholder Value
UFP Industries has been maintaining a strong liquidity position and follows a consistent policy of returning its shareholders’ funds handsomely. The company had $2.2 billion of liquidity as of Sep 30, 2023. Cash and cash equivalents were $957.2 million as of September 2023-end compared with $449.1 million a year ago and $559.4 million at the fiscal 2022-end. The current liquidity level is sufficient to meet the short-term obligation of $1.5 million as of September 2023-end. The long-term debt was $273.3 million as of Sep 30, 2023, slightly down from $275.2 million on Dec 31, 2022, and $275.4 million a year ago.
During the first nine months of 2023, the company paid $49.7 million worth of dividends to the shareholders, up from $43.4 million a year ago.
Image Source: Zacks Investment Research
UFPI shares have gained 8.4% in the past six months, outperforming the Zacks Building Products - Wood industry’s 0.3% decline. The growth prospects are fueled by accretive acquisitions, investments in product innovation, and the expansion of its global footprint. Underpinning UFPI's strategic plan for its business units is the integral role of developing new products. With its focus on innovation and acceleration, the company's investments are positioned to deliver even more significant results in the forthcoming periods.
Zacks Rank & Other Key Picks
UFP Industries currently carries a Zacks Rank #2 (Buy).
Here are other top-ranked stocks that investors may consider from the Zacks Construction sector.
BCC delivered a trailing four-quarter earnings surprise of 20.3%, on average. The Zacks Consensus Estimate for BCC’s 2024 sales indicates growth of 2% but the same for earnings indicates 6.1% decline from a year ago.
North American Construction Group Ltd. (NOA - Free Report) currently carries a Zacks Rank #2. The stock has declined 10.6% in the past six months.
NOA surpassed earnings expectations in three of the trailing four quarters and missed on one occasion, the average surprise being 22.4%. The Zacks Consensus Estimate for NOA’s 2024 sales and EPS indicates growth of 44.1% and 51.7%, respectively, from a year ago.
Howmet Aerospace Inc. (HWM - Free Report) currently carries a Zacks Rank #2. The stock has gained 14.5% in the past six months.
HWM surpassed earnings expectations in three of the trailing four quarters and met on one occasion, the average surprise being 5%. The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates growth of 7.5% and 21.7%, respectively, from a year ago.
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UFP Industries (UFPI) Hikes Dividend, Boosts Investors' Value
UFP Industries, Inc. (UFPI - Free Report) announced a hike of 10% in its quarterly cash dividend from the December 2023 dividend and a 32% raise over the March 2023 quarterly dividend. This move marks the 12th consecutive year of dividend increase by the company.
This wood and materials provider for the construction industry raised the quarterly dividend payout to 33 cents per share from 30 cents paid in December 2023 and from 25 cents paid in March 2023. The amount will be paid on Mar 15, 2024, to shareholders of record as of Mar 1. Based on the closing price of $112.63 per share on Feb 5, 2024, the stock has a dividend yield of 1.18%.
This move highlights the company’s stable financial position and its commitment to reward shareholders regularly. The uptick in dividends underscores UFP Industries' robust and unwavering performance, underscored by its confidence in its growth strategies. Leveraging its solid cash flow, the company not only fuels investments aimed at further amplifying UFP Industries' growth trajectory but also extends its success by distributing dividends.
Enhancement of Shareholder Value
UFP Industries has been maintaining a strong liquidity position and follows a consistent policy of returning its shareholders’ funds handsomely. The company had $2.2 billion of liquidity as of Sep 30, 2023. Cash and cash equivalents were $957.2 million as of September 2023-end compared with $449.1 million a year ago and $559.4 million at the fiscal 2022-end. The current liquidity level is sufficient to meet the short-term obligation of $1.5 million as of September 2023-end. The long-term debt was $273.3 million as of Sep 30, 2023, slightly down from $275.2 million on Dec 31, 2022, and $275.4 million a year ago.
During the first nine months of 2023, the company paid $49.7 million worth of dividends to the shareholders, up from $43.4 million a year ago.
Image Source: Zacks Investment Research
UFPI shares have gained 8.4% in the past six months, outperforming the Zacks Building Products - Wood industry’s 0.3% decline. The growth prospects are fueled by accretive acquisitions, investments in product innovation, and the expansion of its global footprint. Underpinning UFPI's strategic plan for its business units is the integral role of developing new products. With its focus on innovation and acceleration, the company's investments are positioned to deliver even more significant results in the forthcoming periods.
Zacks Rank & Other Key Picks
UFP Industries currently carries a Zacks Rank #2 (Buy).
Here are other top-ranked stocks that investors may consider from the Zacks Construction sector.
Boise Cascade Company (BCC - Free Report) currently sports a Zacks Rank #1 (Strong Buy). The stock has gained 20.6% in the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
BCC delivered a trailing four-quarter earnings surprise of 20.3%, on average. The Zacks Consensus Estimate for BCC’s 2024 sales indicates growth of 2% but the same for earnings indicates 6.1% decline from a year ago.
North American Construction Group Ltd. (NOA - Free Report) currently carries a Zacks Rank #2. The stock has declined 10.6% in the past six months.
NOA surpassed earnings expectations in three of the trailing four quarters and missed on one occasion, the average surprise being 22.4%. The Zacks Consensus Estimate for NOA’s 2024 sales and EPS indicates growth of 44.1% and 51.7%, respectively, from a year ago.
Howmet Aerospace Inc. (HWM - Free Report) currently carries a Zacks Rank #2. The stock has gained 14.5% in the past six months.
HWM surpassed earnings expectations in three of the trailing four quarters and met on one occasion, the average surprise being 5%. The Zacks Consensus Estimate for HWM’s 2024 sales and EPS indicates growth of 7.5% and 21.7%, respectively, from a year ago.