FutureFuel Corp. (NYSE:FF) Announces $0.06 Dividend, But Sustainability Concerns Remain

FutureFuel Corp. has affirmed its dividend of $0.06 per share, resulting in a dividend yield of 6.1%. However, concerns arise about the sustainability of the dividend due to unprofitability and lack of free cash flows. The company's EPS has fallen by 33.8%, and its dividend track record shows cuts in the past. While the dividend has risen, fluctuations in payments and limited growth potential may limit total shareholder return.

FutureFuel Corp. (NYSE: FF) has maintained its quarterly dividend at $0.06 per share, resulting in a dividend yield of 6.1%. However, the sustainability of this dividend is being questioned due to the company's recent financial struggles. The company reported a 51% decline in revenues and a net loss of $10.4 million in the second quarter of 2025 .

The dividend yield is calculated as the annual dividend per share divided by the share price. With the current stock price of $3.86, the yield is 6.1%. However, the company's earnings per share (EPS) have fallen by 33.8%, raising concerns about the company's ability to sustain the dividend in the future .

FutureFuel's dividend history shows fluctuations in payments. For instance, the company cut its dividend in 2020 and 2021, and while it has since increased it, the lack of consistent growth may limit total shareholder return. The company's cash position, while still substantial at $95.2 million as of June 30, 2025, has been declining .

The company's challenges are not limited to financial performance. FutureFuel has faced operational issues, including the temporary idling of its biodiesel plant due to regulatory uncertainty . The company has also announced the resignation of a long-serving director, Terrance C.Z. Egger, from the Board of Directors .

Despite these challenges, FutureFuel is making efforts to grow its specialty chemicals business and is expected to bring new production capacity online in mid-2025 . The company's backward-integrated capacity project is also nearing completion, which could provide a boost to its financial performance in the future .

In conclusion, while FutureFuel's dividend is currently supported, the company's financial challenges and operational issues may pose risks to its sustainability in the long term. Investors should closely monitor the company's performance and regulatory environment to assess the potential impact on the dividend and overall shareholder return.