NEW YORK - The Estée Lauder Companies Inc. (NYSE: EL), a prominent player in the global beauty industry, has declared a quarterly dividend of 66 cents per share for both its Class A and Class B common stock. The payment is scheduled for September 16, 2024, to shareholders who are on record as of the close of business on August 30, 2024.
This announcement underscores the company's ongoing commitment to providing value to its shareholders. Estée Lauder, known for its extensive portfolio of skin care, makeup, fragrance, and hair care products, maintains a strong presence in the luxury and prestige market segments worldwide. With a diverse range of brands under its umbrella, including Estée Lauder, Clinique, M·A·C, and many others, the company has established a significant footprint across approximately 150 countries and territories.
The declaration of the dividend follows Estée Lauder's consistent performance in the beauty and personal care industry, where it competes with other major companies. By maintaining a strategy of innovation and expansion, Estée Lauder continues to solidify its position in the market.
The dividend announcement is based on a press release statement from The Estée Lauder Companies Inc. and reflects the company's financial policies and shareholder relations. As with all investments, dividends are subject to market conditions and company performance, and past dividends are not necessarily indicative of future payouts.
Investors often view regular dividend payments as a sign of a company's financial health and stability, and they can be a critical component of shareholder returns. The Estée Lauder Companies Inc. appears to maintain its commitment to returning value to its investors through such dividends.
As of this report, further details about the company's financial performance and strategies moving forward remain focused on sustaining its growth and market share in the competitive beauty industry.
In other recent news, Estée Lauder Companies Inc. announced CEO Fabrizio Freda's retirement plan at the end of fiscal year 2025. The company's board is actively searching for a successor, considering both internal and external candidates. Freda will continue his leadership role and strategic initiatives until a successor is appointed. In terms of financial developments, Estée Lauder's fourth-quarter sales growth is expected to be +4.4%, a downgrade from the previous +7.7% estimate. Canaccord Genuity has maintained its Hold rating on Estée Lauder but reduced the price target to $100, while Citi reaffirmed its 'Buy' rating with a $110.00 price target. BofA Securities downgraded Estée Lauder from Buy to Neutral due to concerns over weaker-than-anticipated performance in the beauty sector within China. These are the recent developments shaping Estée Lauder's position in the industry.
InvestingPro Insights
The Estée Lauder Companies Inc. (NYSE: EL) has recently announced its quarterly dividend, showcasing its commitment to rewarding shareholders. According to InvestingPro, Estée Lauder has a notable track record of raising its dividend, doing so for 3 consecutive years. Moreover, the company's gross profit margins remain impressive, standing at 70.77% for the last twelve months as of Q3 2024. This figure highlights the company's ability to maintain profitability in the competitive beauty industry.
InvestingPro data further reveals that Estée Lauder has a market capitalization of $34.05 billion and is trading at a high earnings multiple with a P/E ratio of 53.12. Despite a slight revenue decline of 3.25% over the last twelve months as of Q3 2024, the company's revenue growth for the same quarter was positive at 5.04%. This suggests that while there may be challenges, Estée Lauder is still managing to find avenues for growth.
It's worth noting that Estée Lauder's stock has experienced significant volatility, with a one-week total price return of 10.17%, but a three-month price total return of -29.14%. These fluctuations reflect the dynamic nature of the market and the factors influencing investor sentiment. For investors looking for more in-depth analysis, there are 14 additional InvestingPro Tips available for Estée Lauder, offering a comprehensive understanding of the company's financial health and market position.
Estée Lauder's dedication to its dividend policy, coupled with its strong gross profit margins, make it a noteworthy option for investors seeking stability and potential growth in the beauty sector. For those considering an investment in Estée Lauder, the InvestingPro platform provides valuable insights and real-time data to help inform their decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.