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SUSSEX, Wis. - Quad/Graphics, Inc. (NYSE: NYSE:QUAD), a leading global marketing experience company, today announced an increase in its quarterly dividend. The company’s Board of Directors has approved raising the dividend from $0.05 to $0.075 per share, which on an annualized basis, amounts to an increase from $0.20 to $0.30 per share. The new dividend represents a yield of nearly 3%, following a remarkable 53% stock price surge over the past six months, according to InvestingPro data.
Shareholders of record by February 28, 2025, will be eligible for the new dividend, which is scheduled to be paid on March 14, 2025.
Joel Quadracci, Chairman, President, and CEO of Quad, commented on the dividend increase, stating, "We remain focused on our strategic growth and financial priorities, including consistent, strong cash generation." He attributed the company’s ability to raise the dividend and reduce debt while investing in its marketing experience offerings to the successful execution of its initiatives. Quadracci also mentioned the possibility of future share repurchases.
Quad, known for its comprehensive marketing services that span from household to in-store to online, employs approximately 13,000 people across 14 countries. The company serves around 2,700 clients, focusing on sectors such as commerce, financial services, and health. With annual revenue of $2.75 billion and an EBITDA of $227 million, Quad is recognized among the largest agency companies in the U.S. by Ad Age and is also a major commercial printer in North America. For detailed financial analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
The press release also contained forward-looking statements, cautioning that actual results could materially differ due to various risks and uncertainties. These include changes in market demand, operating costs, and economic conditions, among others.
The information provided in this article is based on a press release statement from Quad/Graphics, Inc.
In other recent news, Quad/Graphics has been the subject of significant developments. Rosenblatt Securities has raised its price target for Quad/Graphics to $10.30, up from $7.70, while maintaining a Buy rating. This change follows the company’s investor day, where it provided an optimistic long-term guidance, including projected sales growth within three years and an increase in EBITDA margins.
In the company’s third quarter of 2024 earnings call, Quad/Graphics reported a 4% decline in net sales to $675 million, primarily due to decreased paper and agency solution sales. However, the company also highlighted an increase in adjusted EBITDA to $59 million and adjusted diluted earnings per share to $0.26, up from $0.11 in the same quarter last year.
These recent developments follow Quad/Graphics’ strategic shift towards becoming a marketing experience (MX) company. The company is focusing on reducing debt while continuing to invest in marketing experience offerings, with new AI-driven marketing solutions expected by the end of 2024 and into 2025. Quad/Graphics has also sold the majority of its European operations for $45 million and launched an In-Store Connect Solution in 15 Save Mart stores.
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