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Valvoline (VVV) Announces Quarterly Dividend Increase of 40%

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Valvoline Inc. (VVV - Free Report) recently announced that the board of directors has approved a quarterly cash dividend hike of more than 40% on its common stock.

Post issuance of the new rate, the dividend will be 10.6 cents per share. The hiked dividend is payable Dec 17, 2018, to shareholders on record as of Nov 30, 2018. This initiative will enable the company to retain investors’ confidence in the stock.

Lexington, KY-based Valvoline is a renowned manufacturer and retailer of automotive and engine maintenance services and products. The company is poised to grow on the back of solid segmental performance and efficient capital-deployment moves.

However, in the past three months shares of this Zacks Rank #4 (Sell) company have lost 7.2% compared with the industry’s decline of 4.3%. Also, its recent earnings streak has failed to impress investors. Notably, it has a dismal earnings surprise history with no beats, over the trailing four quarters.

Also, analysts have become increasingly bearish on Valvoline. In the past couple of months, the Zacks Consensus Estimate for fiscal 2019 earnings has trended down from $1.49 to $1.39 owing to five downward estimate revisions versus none upward.

Stocks to Consider

Some better-ranked stocks in the same space are Ashland Global Holdings Inc. (ASH - Free Report) , DAQO New Energy Corp. (DQ - Free Report) and Celanese Corporation (CE - Free Report) . While Ashland Global Holdings and DAQO New Energy sport a Zacks Rank #1 (Strong Buy), Celanese carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ashland Global Holdings surpassed estimates twice in the trailing four quarters, the average beat being 8.19%.

DAQO New Energy surpassed estimates thrice in the trailing four quarters, the average beat being 15.27%.

Celanese exceeded estimates in each of the trailing four quarters, the average beat being 13.29%.

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