United-Guardian hikes dividend to $0.35 per share

HAUPPAUGE, N.Y. - United-Guardian, Inc. (NASDAQ:UG) announced on Friday that its Board of Directors has declared a cash dividend of $0.35 per share, marking a notable increase from previous distributions. This new dividend is set to be paid on July 31, 2024, to shareholders who are on record by the close of business on July 23, 2024.

The company, which has a history of 29 consecutive years of dividend payments, is increasing its dividend by 40% over the previous $0.25 per share payout earlier this year and by 250% over the $0.10 dividend paid in July of the prior year. Donna Vigilante, President of United-Guardian, expressed satisfaction with the decision, emphasizing the company's balance between supporting growth and rewarding shareholders.

United-Guardian's business spans the manufacturing of cosmetic ingredients, medical lubricants, sexual wellness products, and pharmaceuticals. The substantial dividend increase appears to reflect the company's confidence in its financial stability and commitment to delivering shareholder value.

The announcement is based on a press release statement and should be considered in light of the risks and uncertainties that may affect the company's future performance, as outlined in its filings with the Securities and Exchange Commission. The increase in dividend payments indicates a positive outlook by the company's management, although it is important to note that forward-looking statements are subject to change.

InvestingPro Insights

United-Guardian, Inc. (NASDAQ:UG) has demonstrated a strong commitment to shareholder returns, as evidenced by the recent increase in its cash dividend to $0.35 per share. This move aligns with the company's impressive record of maintaining dividend payments for 29 consecutive years, a testament to its financial resilience and consistent performance.

Investors considering United-Guardian's stock will find additional insights from InvestingPro. A key InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, providing a solid liquidity position that supports its generous dividend policy. Furthermore, United-Guardian has been trading at a high P/E ratio relative to near-term earnings growth, which may indicate a premium market valuation of its stable earnings potential.

From a data perspective, United-Guardian's P/E ratio stands at 15.86, with an adjusted P/E ratio over the last twelve months as of Q1 2024 at 16.1. The company's revenue growth for Q1 2024 was robust at 26.64%, showcasing its ability to increase sales significantly over the quarter. Additionally, the dividend yield as of the same period was 5.26%, making it an attractive option for income-focused investors.

For those interested in further analysis, there are additional InvestingPro Tips available that delve deeper into United-Guardian's financial metrics and market performance. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription to access these valuable insights, which include the company's liquid assets exceeding short-term obligations and a strong return over the last three months.

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