Avient: A High-Yield Dividend Machine with Catalysts for Growth Ahead

In an era of economic uncertainty, Avient Corporation (AVNT) emerges as a compelling investment opportunity, blending a 2.78% dividend yield with operational resilience and strategic growth drivers. Trading at $38.03 per share, the company’s 15-year dividend streak, margin expansion, and sector-specific tailwinds position it as a rare blend of income stability and capital appreciation potential. Here’s why investors should act before the June 19 ex-dividend date.

A Dividend Machine with Room to Grow

Avient’s dividend history speaks to its financial discipline and shareholder focus. With a quarterly payout of $0.27 per share (annualized to $1.08), the dividend has grown steadily over 15 years—from $0.25 in late 2023 to $0.26 in 2024, and now $0.27 in 2025. This 39.6% payout ratio (based on Q1 2025 adjusted EPS of $0.76) leaves ample room for further increases.

Crucially, the dividend is underpinned by strong free cash flow. With $540M+ EBITDA guidance for 2025 and a 2% organic sales increase in Q1, Avient’s financial health remains robust. Its liquidity—bolstered by a $1.1B revolving credit facility—ensures flexibility to navigate economic cycles while maintaining shareholder returns.

Operational Resilience in High-Growth Sectors

Avient’s focus on healthcare and packaging segments is driving margin expansion and revenue diversification. In Q1 2025, adjusted EBITDA margins rose to 17.5%, up from 17.1% in Q1 2024, reflecting cost discipline and demand for its specialty materials.

• Healthcare: Growth in medical devices and pharmaceutical packaging, where Avient’s materials meet stringent regulatory standards.
• Packaging: Rising demand for sustainable, lightweight materials in consumer goods and e-commerce.

These sectors are less cyclical than traditional industrial markets, offering a moat against economic downturns.

Innovation and Leadership: Fueling Long-Term Value

Avient’s Dyneema® fiber, the world’s strongest polyethylene fiber, exemplifies its R&D prowess. Used in defense, safety gear, and industrial applications, Dyneema® commands premium pricing and drives margins. Additionally, CEO Ashish Khandpur’s promotion to Chairman signals continuity in strategic execution, including initiatives like the $200M expansion of its high-performance materials division.

Why $38.03 Is Undervalued

At $38.03, Avient’s stock trades at a 7.5x EV/EBITDA multiple—well below its five-year average of 8.9x. This discounts its growth catalysts:
1. Margin Expansion: 17.5% EBITDA margins in Q1 suggest further upside as healthcare/packaging sales scale.
2. Debt Management: Net leverage of 3.2x (below its 4.0x target) leaves room for acquisitions or share buybacks.
3. Global Footprint: A 9,000-employee workforce and 45+ facilities in high-growth regions like Latin America and Asia ensure steady demand.

Call to Action: Capitalize Before June 19

The June 19 ex-dividend date is a critical juncture. Investors must own AVNT shares by June 18 to qualify for the $0.27 dividend, which will be paid on July 9. With a 2.78% yield and a stock price poised to rise on positive catalysts, this is a rare opportunity to lock in income while benefiting from Avient’s growth trajectory.

Final Take

Avient combines dividend reliability with secular growth in healthcare, packaging, and advanced materials. Its strong liquidity, 17.5% EBITDA margins, and innovation-driven product pipeline (e.g., Dyneema®) suggest this is a company primed to outperform. With the ex-dividend date looming, now is the time to act—before the window closes.

Investors seeking stability and growth need look no further than AVNT at $38.03. The math is clear: high yield + operational strength + strategic execution = a compelling buy.