NL Industries' Dividend Outlook: Potential Growth Amidst Cautionary Concerns

NL Industries (NYSE:NL) will pay a dividend of $0.09 per share on September 23rd. The annual payment is 5.5% of the current stock price, above the industry average. The company's projected earnings seem likely to cover future distributions, with EPS expected to expand by 36.6% over the next year. However, caution should be exercised as the payout ratio may reach 42% by next year, and the dividend has only a 6-year track record.

NL Industries (NYSE:NL) has announced that it will pay a quarterly dividend of $0.09 per share on September 23rd, 2025. This dividend represents a 5.5% yield on the current stock price, which is above the industry average of 1.1% [1]. The company's projected earnings are expected to cover future distributions, with EPS anticipated to expand by 36.6% over the next year.

However, investors should exercise caution. The payout ratio is projected to reach 42% by next year, which may pose a risk to future dividend growth. Additionally, the company has only paid a dividend for six years, which may indicate a lack of long-term stability in its dividend payments [2].

Despite these concerns, NL Industries' dividend yield is significantly higher than the bottom 25% of dividend payers in the US market, which currently stands at 1.4%. This makes it an attractive option for income-focused investors [3].

In conclusion, while NL Industries offers a compelling dividend yield, investors should carefully consider the company's payout ratio and dividend track record before making investment decisions.

References:
[1] https://simplywall.st/stocks/us/commercial-services/nyse-nl/nl-industries/dividend
[2] https://simplywall.st/stocks/us/commercial-services/nyse-nl/nl-industries/dividend
[3] https://simplywall.st/stocks/us/commercial-services/nyse-nl/nl-industries/dividend