American Vanguard Declares Quarterly Dividend

Rhea-AI Summary

American Vanguard Corporation (AVD) declares a cash dividend of $0.03 per share for shareholders of record as of March 27, 2024. The dividend reflects the company's confidence in its core business, financial strength, and growth initiatives.

Insights

Financial Analyst

The declaration of a cash dividend by American Vanguard Corporation signifies a tangible reward to shareholders and reflects the company's current financial health. Evaluating the progression of annual cash dividend payments, there is a notable increasing trend from $0.080 in 2021 to $0.120 in 2023. This increment suggests a robust financial performance and a commitment to returning value to shareholders. The consistency in dividend growth can be perceived as a positive signal to the market, often interpreted as management's confidence in the company's earnings stability and future prospects.

However, it is crucial for investors to consider the dividend yield in relation to the stock price. A $0.03 per share dividend might represent a small yield if the share price is significantly high, which could influence investor attraction to the stock, especially for those seeking income-generating investments. Additionally, the payout ratio, which is the proportion of earnings paid out as dividends, should be sustainable to avoid jeopardizing future growth or financial stability.

Market Research Analyst

From a market perspective, the impact of dividend announcements can vary. In American Vanguard's case, the continued payment of dividends, especially with an upward trend, can be a factor in maintaining investor loyalty and attracting new shareholders who prioritize steady income. It is also an indicator of the company's position within the agricultural productivity, public health and environmental sustainability sectors, which are areas with significant growth potential given global trends towards sustainable practices.

Investors may also interpret the dividend as a signal of the company's strategic growth initiatives' effectiveness. However, it is essential to analyze the company's reinvestment strategy and balance it against the dividends paid, as excessive payouts could limit the company's ability to invest in new opportunities and technologies, which are critical in these evolving sectors.

Economist

Dividend policies can be reflective of broader economic conditions. In a stable or growing economy, companies might increase dividends as they experience higher profitability and positive outlooks. Conversely, during economic downturns, dividend cuts or stagnation are common. American Vanguard's increasing dividend payments could indicate not only internal company strength but also a favorable economic environment for its business segments.

It is essential to consider macroeconomic factors such as interest rates, inflation and agricultural commodity prices, as these can have significant impacts on the company's operations and, subsequently, its ability to sustain dividend payments. A sound dividend policy should account for these external factors to ensure that shareholder returns are not adversely affected by economic shifts.

NEWPORT BEACH, Calif.--(BUSINESS WIRE)-- American Vanguard Corporation (NYSE: AVD) announced that its Board of Directors has declared a cash dividend in the amount of $0.03 per share of the company’s common stock to shareholders of record as of March 27, 2024, for distribution on April 10, 2024.

Chairman and CEO Eric W. Wintemute commented, “This dividend payment continues our history of providing cash returns to shareholders reflecting the confidence that the Board of Directors has in our core business, our overall financial strength, and the substantial prospects of our strategic growth initiatives. We appreciate the continuing support of our shareholders, as we develop and deliver important solutions that enhance agricultural productivity, safeguard public health, and facilitate environmental sustainability.”

Annual Cash Dividend Payments: Based on Date of Cash Distribution

2024 - - Payments (including pending payment) . . . . . . . . . . . . . . .$0.060
2023 - - Full Calendar Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.120
2022 - - Full Calendar Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.095
2021 - - Full Calendar Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.080

About American Vanguard

American Vanguard Corporation is a diversified specialty and agricultural products company that develops, manufactures, and markets solutions for crop protection and nutrition, turf and ornamentals management, commercial and consumer pest control. Over the past 20 years, through product and business acquisitions, the Company has expanded its operations into 17 countries and now has over 1,000 product registrations in 56 nations worldwide. Its strategy rests on three growth initiatives – i) Core Business (through innovation of conventional products), ii) Green Solutions (with over 130 biorational products – including fertilizers, microbials, nutritionals and non-conventional products) and iii) Precision Agriculture innovation (including SIMPAS prescriptive application and Ultimus measure/record/verify technologies). American Vanguard is included in the Russell 2000® and Russell 3000® Indexes. To learn more about American Vanguard, please reference the Company’s web site at www.american-vanguard.com.

The Company, from time to time, may discuss forward-looking information. Except for the historical information contained in this release, all forward-looking statements are estimates by the Company’s management and are subject to various risks and uncertainties that may cause results to differ from management’s current expectations. Such factors include weather conditions, changes in regulatory policy and other risks as detailed from time-to-time in the Company’s SEC reports and filings. All forward-looking statements, if any, in this release represent the Company’s judgment as of the date of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240311522780/en/

Company Contact:

American Vanguard Corporation

William A. Kuser, Director of Investor Relations

(949) 260-1200

williamk@amvac.com



Investor Representative

The Equity Group Inc.

www.theequitygroup.com

Lena Cati / 212-836-9611

Lcati@equityny.com

Source: American Vanguard Corporation

FAQ

What is the amount of the cash dividend declared by American Vanguard Corporation (AVD)?

American Vanguard Corporation (AVD) has declared a cash dividend of $0.03 per share.

When will the cash dividend be distributed to shareholders of American Vanguard Corporation (AVD)?

The cash dividend will be distributed on April 10, 2024, to shareholders of record as of March 27, 2024.

Who is the Chairman and CEO of American Vanguard Corporation (AVD)?

The Chairman and CEO of American Vanguard Corporation (AVD) is Eric W. Wintemute.

What is the history of annual cash dividend payments by American Vanguard Corporation (AVD)?

In 2024, the annual cash dividend payment is $0.060. In 2023, it was $0.120 for the full calendar year. In 2022, it was $0.095, and in 2021, it was $0.080.