Matthews International Declares Quarterly Dividend: A Steady Stream of Income

As the market closed on Jan 29, 2025, Matthews International Corporation (MATW) declared its quarterly dividend, providing a steady stream of income for its shareholders. The company, which operates in the industrials sector and provides brand solutions, memorialization products, and industrial technologies, has a history of consistent dividend payments and growth.

MATW's current annual dividend is $1.00 per share, with a yield of 3.53%. This quarterly payout of $0.25 is in line with the company's historical payouts and is relatively high compared to the average dividend yield of S&P 500 companies, which was around 1.5% in 2024. The company has a consistent track record of dividend growth, with an average annual increase of approximately 10% over the past decade.



The company's dividend growth is a testament to its strong financial performance and commitment to returning value to shareholders. Despite recent challenges in the market, MATW has maintained its dividend payout, demonstrating its resilience and ability to generate cash flow.



However, it is essential to consider the company's earnings per share (EPS) growth prospects and the sustainability of the dividend. According to Standard & Poor's forecast, the company's currently anticipated EPS growth for the next few years is low. Additionally, analysts have been regularly downgrading their EPS expectations for the last 12 months, resulting in frequent downward revisions. This bearish outlook on EPS estimates suggests that the company's earnings may not be sufficient to support the current dividend payout in the long term.



In conclusion, Matthews International's declared quarterly dividend is in line with its historical payouts and is relatively high compared to the broader market's yield. The company has a consistent track record of dividend growth, with an average annual increase of approximately 10% over the past decade. However, the company's low EPS growth prospects may put the sustainability of the dividend at risk in the long term. Investors should closely monitor the company's earnings and dividend payout ratio to ensure that the dividend remains sustainable in the long term.