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Louisiana-Pacific (LPX) Hikes Dividend, Boosts Investors Value
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Louisiana-Pacific Corporation (LPX - Free Report) , commonly known as LP Building Solutions, hiked its quarterly cash dividend to 26 cents per share. The move underscores the company’s sound financial position and its commitment to boost shareholders’ value.
With continuous efforts to reward its shareholders with regular dividends, Louisiana-Pacific raised its quarterly dividend by 8.3% from the previous figure of 24 cents per share. The amount will be paid out on Mar 8, 2024, to shareholders of record as of Feb 23.
What’s Driving Dividend Hikes?
Louisiana-Pacific has been consistently enhancing shareholders’ returns through share repurchases and dividends. In the first nine months of 2023, it paid $52 million in dividends and $900 million to repurchase shares.
After paying for dividends and share repurchases, the company ended third-quarter 2023 with $710 million of liquidity, including $160 million in cash and cash equivalents. The company had committed to returning at least 50% of cash flow to its shareholders from operations in excess of capital expenditures to sustain its core business and grow its Siding and value-added OSB over time.
Investors always prefer an income-generating stock. Hence, a high-dividend-yielding one is obviously much coveted. It goes without saying that stockholders are always on the lookout for companies with a track record of consistent and incremental dividend payments to bet on.
Price Performance
Shares of the company have gained 0.2% in the after-hours trading session on Feb 9 and rose 9% in the past six months compared with the Zacks Building Products – Wood industry’s 6.2% growth. The trend is likely to continue, given its focus on the Siding business, cost containment efforts and enhancing shareholders’ value.
Image Source: Zacks Investment Research
LP has been increasing the penetration of Siding products in repair/remodel and rolling out SmartSide products. It exited the fiber product line to focus on higher-margin SmartSide strand products. The company also launched ExpertFinish within the Prefinish product line.
LP is gradually transforming a commodity producer into a more stable cash-generative business by increasing revenues and the EBITDA mix. LP continues focusing on three areas, such as increasing the efficiency of mills by improving productivity, run time and quality through overall equipment effectiveness or OEE initiatives, applying best practices to its supply chain and optimizing infrastructure costs.
In a bid to reduce costs, LP lowered the cost structure of its facilities through Lean Six Sigma efforts, the sale or shutdown of underperforming mills and manufacturing facilities as well as investments in technology. Louisiana-Pacific resorts to a strategy of curtailing production at selected facilities to meet customer demand and optimize its portfolio as well as margins.
Zacks Rank & Stocks to Consider
Louisiana-Pacific currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks that investors may consider from the same industry.
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 a 6.1% decline from a year ago.
Trex Company, Inc. (TREX - Free Report) currently sports a Zacks Rank #1. The company has surpassed earnings estimates in the trailing four quarters, the average surprise being 16.9%.
TREX has seen an upward estimate revision to $2.20 per share from $2.18 for 2024 earnings over the past 60 days. The upside suggests 19.3% year-over-year growth, with 11.7% revenue improvement.
UFP Industries, Inc. (UFPI - Free Report) carries a Zacks Rank #2 (Buy). The company has surpassed earnings estimates in the trailing four quarters, the average surprise being 9.4%.
UFPI has seen an upward estimate revision to $7.72 per share from $7.71 for 2024 earnings over the past 60 days. The Zacks Consensus Estimate for its 2024 sales indicates a marginal growth of 0.1%, but the same for earnings indicates a 5% decline from a year ago.
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Louisiana-Pacific (LPX) Hikes Dividend, Boosts Investors Value
Louisiana-Pacific Corporation (LPX - Free Report) , commonly known as LP Building Solutions, hiked its quarterly cash dividend to 26 cents per share. The move underscores the company’s sound financial position and its commitment to boost shareholders’ value.
With continuous efforts to reward its shareholders with regular dividends, Louisiana-Pacific raised its quarterly dividend by 8.3% from the previous figure of 24 cents per share. The amount will be paid out on Mar 8, 2024, to shareholders of record as of Feb 23.
What’s Driving Dividend Hikes?
Louisiana-Pacific has been consistently enhancing shareholders’ returns through share repurchases and dividends. In the first nine months of 2023, it paid $52 million in dividends and $900 million to repurchase shares.
After paying for dividends and share repurchases, the company ended third-quarter 2023 with $710 million of liquidity, including $160 million in cash and cash equivalents. The company had committed to returning at least 50% of cash flow to its shareholders from operations in excess of capital expenditures to sustain its core business and grow its Siding and value-added OSB over time.
Investors always prefer an income-generating stock. Hence, a high-dividend-yielding one is obviously much coveted. It goes without saying that stockholders are always on the lookout for companies with a track record of consistent and incremental dividend payments to bet on.
Price Performance
Shares of the company have gained 0.2% in the after-hours trading session on Feb 9 and rose 9% in the past six months compared with the Zacks Building Products – Wood industry’s 6.2% growth. The trend is likely to continue, given its focus on the Siding business, cost containment efforts and enhancing shareholders’ value.
Image Source: Zacks Investment Research
LP has been increasing the penetration of Siding products in repair/remodel and rolling out SmartSide products. It exited the fiber product line to focus on higher-margin SmartSide strand products. The company also launched ExpertFinish within the Prefinish product line.
LP is gradually transforming a commodity producer into a more stable cash-generative business by increasing revenues and the EBITDA mix. LP continues focusing on three areas, such as increasing the efficiency of mills by improving productivity, run time and quality through overall equipment effectiveness or OEE initiatives, applying best practices to its supply chain and optimizing infrastructure costs.
In a bid to reduce costs, LP lowered the cost structure of its facilities through Lean Six Sigma efforts, the sale or shutdown of underperforming mills and manufacturing facilities as well as investments in technology. Louisiana-Pacific resorts to a strategy of curtailing production at selected facilities to meet customer demand and optimize its portfolio as well as margins.
Zacks Rank & Stocks to Consider
Louisiana-Pacific currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks that investors may consider from the same industry.
Boise Cascade Company (BCC - Free Report) currently sports a Zacks Rank #1 (Strong Buy). 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 a 6.1% decline from a year ago.
Trex Company, Inc. (TREX - Free Report) currently sports a Zacks Rank #1. The company has surpassed earnings estimates in the trailing four quarters, the average surprise being 16.9%.
TREX has seen an upward estimate revision to $2.20 per share from $2.18 for 2024 earnings over the past 60 days. The upside suggests 19.3% year-over-year growth, with 11.7% revenue improvement.
UFP Industries, Inc. (UFPI - Free Report) carries a Zacks Rank #2 (Buy). The company has surpassed earnings estimates in the trailing four quarters, the average surprise being 9.4%.
UFPI has seen an upward estimate revision to $7.72 per share from $7.71 for 2024 earnings over the past 60 days. The Zacks Consensus Estimate for its 2024 sales indicates a marginal growth of 0.1%, but the same for earnings indicates a 5% decline from a year ago.