WDFC: FY25 saw robust growth, higher dividends, and all shareholder proposals approved

What Happened?

Shares of household products company WD-40 jumped 5.4% in the morning session after the company announced an increase to its quarterly dividend of more than 8%. 

The board of directors declared a new quarterly dividend of $1.02 per share. A dividend increase is often seen by investors as a sign of a company's financial strength and management's confidence in future earnings. By increasing the payout, the company signaled its ability to generate consistent cash flow and its commitment to returning capital to its shareholders. This type of news can make a stock more attractive to investors looking for income, which in turn can drive up the share price.

After the initial pop the shares cooled down to $202.46, up 4.8% from previous close.

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What Is The Market Telling Us

WD-40’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

WD-40 is down 15.6% since the beginning of the year, and at $202.46 per share, it is trading 25.4% below its 52-week high of $271.50 from December 2024. Investors who bought $1,000 worth of WD-40’s shares 5 years ago would now be looking at an investment worth $772.53.