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Scotts Miracle-Gro Maintains Dividend Consistency Amid Market Volatility

Rhys NorthwoodTuesday, Apr 22, 2025 6:32 am ET

127min read

The Scotts Miracle-Gro Company (NYSE: SMG) has reaffirmed its commitment to shareholder returns with its latest quarterly dividend announcement, offering stability in an otherwise unpredictable market. The $0.66-per-share payout, payable on June 6, 2025, underscores the company’s financial discipline and its position as a leader in lawn and garden products.

Dividend Details and Timelines

The dividend, approved by the Board of Directors on April 21, 2025, will be paid to shareholders of record as of May 23, 2025. The ex-dividend date—the last day to purchase shares to qualify for the payout—is set for May 22, 2025. This marks the second dividend payment of 2025, with three more scheduled through December.

The consistency of Scotts’ dividend policy stands out: the $0.66 quarterly payout has remained unchanged since late 2024, and the company has maintained a 3.6% annualized dividend yield based on its recent share price of $73.55. This yield, supported by a dividend cover ratio of 2.0, signals financial resilience, as earnings comfortably exceed dividend obligations.

A Company in Command of Its Market

With $3.6 billion in annual sales, Scotts Miracle-Gro dominates the lawn and garden industry through its flagship brands: Scotts®, Miracle-Gro®, and Ortho®. Its wholly-owned subsidiary, The Hawthorne Gardening Company, further expands its reach into the fast-growing indoor and hydroponic gardening market. This diversification has insulated the company from seasonal fluctuations, contributing to steady cash flows.

Institutional Activity and Analyst Sentiment

Recent institutional activity has been mixed. Over the past six months, insiders such as the Hagedorn family sold significant shares, while hedge funds like Point72 Asset Management increased their stakes. This signals a divergence in sentiment, though the company’s Jefferies “Buy” rating (as of April 2025) suggests optimism about its long-term prospects.

Stability for Income Investors

For income-focused investors, Scotts’ dividend consistency is a key selling point. The company has not increased its dividend annually since 2023, but its stable payout ratio (with no “NaN%” issues after earnings data updates) and diversified revenue streams reduce risk.

Conclusion: A Reliable Dividend Play

Scotts Miracle-Gro’s dividend announcement reinforces its role as a defensive investment in volatile markets. With a dividend yield of 3.6%, a strong brand portfolio, and a financial buffer (dividend cover ratio of 2.0), the company offers stability to shareholders. While institutional sentiment is mixed, the Jefferies “Buy” rating and consistent cash flows suggest growth potential in emerging markets like indoor gardening.

Investors should note the May 22, 2025, ex-dividend date for the June payout and monitor future declarations, expected in July and October 2025. For those seeking reliable income with limited volatility, Scotts Miracle-Gro remains a compelling choice—a garden of steady returns in a changing economic climate.

Data as of April 2025. Always consult the latest corporate announcements for real-time updates.

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