Why NewMarket Corporation (NYSE:NEU) Might Interest You for Its Upcoming Dividend

NewMarket Corporation (NYSE:NEU) has been steadily gaining attention from investors due to its consistent dividend growth and attractive yield. As the company approaches its next ex-dividend date on December 16, 2024, it's worth exploring why you might be interested in NEU for its upcoming dividend.



NEU's dividend history demonstrates a strong commitment to returning value to shareholders. The company has paid four dividends in the last twelve months, with an annualized dividend per share of $9.75, representing a current yield of 1.81%. This yield is higher than the industry average but lower than the Basic Materials sector average, indicating a balanced approach to capital allocation.



NewMarket's dividend payout ratio is 21.6%, which is lower than both the sector and industry averages. This suggests a sustainable dividend policy, as the company is not overcommitting its earnings to dividend payments. The payout ratio has evolved over time, with a notable trend of increasing dividends, reflecting the company's financial strength and commitment to shareholders.

NEU's earnings growth has contributed significantly to its dividend payouts. In 2024, the company's earnings per share (EPS) were $45.01, up from $39.85 in 2023, a 13% increase. This earnings growth, coupled with a sustainable dividend payout ratio, positions NEU well to continue increasing its dividend payouts in the future.

Strategic acquisitions have also played a role in NewMarket's dividend growth. The company's acquisition of Innospec's fuel specialties business in 2017 and the lubricant additives business of Afton Chemical in 2018 expanded its product offerings and customer base, contributing to its dividend growth.

In conclusion, NewMarket Corporation (NYSE:NEU) offers an attractive dividend opportunity with a history of consistent growth and a sustainable payout ratio. The company's earnings growth and strategic acquisitions have contributed to its dividend payouts, making it an interesting choice for investors seeking a balanced approach to capital allocation and dividend income. As NEU approaches its next ex-dividend date, it's worth considering the company's dividend potential as part of a diversified investment strategy.