Oil-Dri plans stock split, declares dividends

CHICAGO - Oil-Dri Corporation of America (NYSE: ODC), a manufacturer and supplier of specialty sorbent products, announced a two-for-one stock split and the declaration of quarterly cash dividends for its Common and Class B stock. The dividends, set at $0.31 for Common Stock and $0.233 for Class B Stock, will be payable on November 22, 2024, to shareholders on record as of November 8, 2024. This marks a continuous yearly dividend payment since 1974 and a 21-year streak of annual dividend increases.

The stock split is contingent on shareholder approval to amend the Certificate of Incorporation during the annual meeting on December 11, 2024, to increase the number of authorized shares. If approved, the company anticipates promptly implementing the stock split following the meeting. Shareholders of record on December 20, 2024, will receive an additional share for each share held, with distribution expected after the market closes on January 3, 2025. Trading on a post-split basis is expected to commence on January 6, 2025.

Daniel S. Jaffee, Chairman, President, and CEO of Oil-Dri, expressed that the stock split aims to strengthen the company's market position and enhance shareholder value, noting the doubling of the Common Stock's trading price since October 2022. Jaffee anticipates that the stock split will improve liquidity and make shares more accessible to a broader investor base. Shareholders do not need to take any action, as additional shares will be credited automatically or distributed through brokers.

The company's transfer agent, Computershare Trust Company, N.A., will administer the stock split. Oil-Dri will also release its fourth-quarter performance for fiscal year 2024 after the U.S. stock market closes on Thursday and will host a live webcast for an earnings discussion the following day.

This announcement comes as part of Oil-Dri's continuous efforts to create value from its sorbent minerals, serving various markets for over 80 years. The information is based on a press release statement from Oil-Dri Corporation of America.

InvestingPro Insights

Oil-Dri Corporation of America's recent announcement of a stock split and dividend declaration aligns well with its strong financial position and shareholder-friendly policies. According to InvestingPro data, the company boasts a market capitalization of $475.94 million and a P/E ratio of 10.89, indicating a potentially undervalued stock relative to its earnings.

InvestingPro Tips highlight Oil-Dri's commitment to shareholder returns. The company has raised its dividend for 10 consecutive years and has maintained dividend payments for an impressive 50 consecutive years. This long-standing dividend policy underscores the company's financial stability and dedication to rewarding shareholders, which is further emphasized by the recent dividend declaration and stock split announcement.

The company's financial health is also reflected in its ability to cover interest payments with its cash flows and operate with a moderate level of debt. These factors contribute to Oil-Dri's capacity to sustain and potentially increase shareholder returns in the future.

For investors seeking more comprehensive insights, InvestingPro offers 8 additional tips that could provide valuable context for Oil-Dri's financial outlook and market position.

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