Bullish indicating open at $55-$60, IPO prices at $37
LEXINGTON, Ky. - Somnigroup International Inc. (NYSE: SGI), a leading bedding company with a market capitalization of $14.4 billion, has raised its quarterly cash dividend to $0.15 per share, a 15% increase. The dividend will be distributed on March 20, 2025, to shareholders on record as of March 6, 2025. This represents a current dividend yield of 0.78%, with the company maintaining a consistent dividend growth track record for four consecutive years.
The company’s Chairman and CEO, Scott Thompson, stated that the increase reflects the company’s strong market position and its ability to generate substantial free cash flow, which reached $520 million in the last twelve months. This latest hike is the fifth in four years, effectively doubling the dividend since its inception in 2021. According to InvestingPro, the company maintains a healthy financial position with strong profitability metrics and has received positive earnings revisions from analysts for the upcoming period.
Somnigroup, which operates globally in over 100 countries, owns prominent businesses such as Tempur Sealy (NYSE:SGI), Mattress Firm, and Dreams. Its brand portfolio features well-known names like Tempur-Pedic®, Sealy®, and Stearns & Foster®. The company prides itself on delivering innovative sleep solutions through a comprehensive omni-channel platform, meeting consumers across various retail touchpoints.
In addition to product innovation, Somnigroup emphasizes shareholder value, prudent capital allocation, and corporate responsibility, including environmental protection and community engagement.
This dividend announcement is based on a press release statement from Somnigroup International.
In other recent news, Somnigroup International Inc., formerly Tempur Sealy International Inc., has completed its rebranding process and now trades on the New York Stock Exchange under the ticker symbol "SGI." This change follows the company’s acquisition of Mattress Firm Group Inc. for approximately $5 billion, a move aimed at strengthening its omni-channel strategy and global presence. The acquisition was financed through a combination of cash and stock issuance, which included 34.2 million shares of common stock. As part of the restructuring, Mattress Firm, Dreams, and Tempur Sealy will operate as decentralized business units.
In terms of financial performance, the combined entity reported pro forma sales of around $8 billion for the year ending December 31, 2024, with 85% of sales occurring in North America. The company is expected to leverage these sales through direct-to-consumer channels, which account for about 65% of total sales. S&P Global has confirmed Tempur Sealy’s ’BB’ ratings following the acquisition, although senior notes were downgraded to ’BB-’ due to increased debt levels. Despite this, the company’s outlook remains stable, with expectations of sales growth driven by new product launches and distribution gains.
Additionally, Scott Thompson, Chairman and CEO, will temporarily take on the role of interim CEO for Mattress Firm as the company searches for a permanent replacement. The company also plans to divest certain retail locations to Mattress Warehouse in the coming months.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.