AZZ Inc. Announces Fiscal Year 2024 Fourth Quarter Cash Dividend of $0.17 per Share

Rhea-AI Summary

AZZ Inc. (NYSE: AZZ) declares a fourth-quarter cash dividend of $0.17 per share, payable on May 2, 2024. The company plans to continue regular quarterly dividends, subject to Board discretion.

Insights

Financial Analyst

The announcement of a quarterly cash dividend by AZZ Inc. suggests a stable financial position and a commitment to returning value to shareholders. The dividend of $0.17 per share indicates a distribution of profits back to investors, which can be an attractive proposition for income-focused shareholders. It's important to consider the dividend yield, payout ratio and the company's historical dividend policy when assessing the sustainability of these payments. The payout ratio, in particular, is a key metric that shows what portion of earnings is being returned to shareholders and a sustainable ratio typically signals a healthy balance between reinvesting in the company and rewarding shareholders.

Investors often view regular dividends as a sign of a company's financial health and stability, which can be a positive signal in the market. However, it's also important to monitor the company's operating results and financial condition, as mentioned by AZZ, since these factors will influence future dividends. In the short term, the dividend may provide a slight uptick in stock demand due to its income-generating potential, but long-term value will depend on AZZ's ability to maintain or grow its dividend alongside its business performance.

Market Research Analyst

From a market perspective, AZZ Inc.'s dividend announcement is a strategic move that could influence investor sentiment. The hot-dip galvanizing and coil coating industry is capital intensive and AZZ's ability to pay dividends might reflect its operational efficiency and market position. It's essential to analyze industry trends, such as demand for galvanizing services, which are closely tied to construction and manufacturing sectors. A downturn in these sectors could impact AZZ's business outlook and, subsequently, its dividend payments.

It is also beneficial to compare AZZ's dividend policy with its peers to gauge competitiveness. A consistent dividend payer in the industry may be perceived as a more reliable investment, potentially attracting a different class of investors, such as dividend funds and conservative income investors. The forward-looking statements regarding the intention to pay regular dividends could be AZZ's way of signaling confidence in its future performance, but analysts should remain vigilant about the company's ability to deliver on this promise, especially in a fluctuating economic environment.

FORT WORTH, Texas, April 4, 2024 /PRNewswire/ -- AZZ Inc. (NYSE: AZZ), the leading independent provider of hot-dip galvanizing and coil coating solutions, today announced its Board of Directors has authorized a fourth quarter cash dividend in the amount of $0.17 per share on the Company's outstanding shares of common stock. The dividend is payable on May 2, 2024, to shareholders of record as of the close of business on April 17, 2024.

While AZZ currently intends to pay regular quarterly cash dividends for the foreseeable future, any future dividends will be reviewed on an individual basis and declared by the Board of Directors at its discretion. AZZ remains committed to enhancing shareholder value based upon its consideration of various factors, including operating results, financial condition and business outlook at the applicable time.

About AZZ Inc.

AZZ Inc. is the leading independent provider of hot-dip galvanizing and coil coating solutions to a broad range of end-markets. Collectively, our business segments provide sustainable, unmatched metal coating solutions that enhance the longevity and appearance of buildings, products and infrastructure that are essential to everyday life.

Safe Harbor Statement

Certain statements herein about our expectations of future events or results constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by terminology such as "may," "could," "should," "expects," "plans," "will," "might," "would," "projects," "currently," "intends," "outlook," "forecasts," "targets," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. Such forward-looking statements are based on currently available competitive, financial, and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. Forward-looking statements speak only as of the date they are made and are subject to risks that could cause them to differ materially from actual results. Certain factors could affect the outcome of the matters described herein. This press release may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand for our products and services, including demand by the construction markets, the industrial markets, and the metal coatings markets. We could also experience additional increases in labor costs, components and raw materials including zinc and natural gas, which are used in our hot-dip galvanizing process; supply-chain vendor delays; customer requested delays of our products or services; delays in additional acquisition opportunities; an increase in our debt leverage and/or interest rates on our debt, of which a significant portion is tied to variable interest rates; availability of experienced management and employees to implement AZZ's growth strategy; a downturn in market conditions in any industry relating to the products we inventory or sell or the services that we provide; economic volatility, including a prolonged economic downturn or macroeconomic conditions such as inflation or changes in the political stability in the United States and other foreign markets in which we operate; acts of war or terrorism inside the United States or abroad; and other changes in economic and financial conditions. AZZ has provided additional information regarding risks associated with the business, including in Part I, Item 1A. Risk Factors, in AZZ's Annual Report on Form 10-K for the fiscal year ended February 28, 2023, and other filings with the SEC, available for viewing on AZZ's website at www.azz.com and on the SEC's website at www.sec.gov. You are urged to consider these factors carefully when evaluating the forward-looking statements herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. These statements are based on information as of the date hereof and AZZ assumes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Company Contact:
David Nark, Senior Vice President of Marketing, Communications, and Investor Relations
AZZ Inc.
(817) 810-0095
www.azz.com 

Investor Contact:
Sandy Martin, Phillip Kupper
Three Part Advisors
(214) 616-2207
www.threepa.com 

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SOURCE AZZ, Inc.

FAQ

What dividend has AZZ Inc. (AZZ) declared for the fourth quarter?

AZZ Inc. (AZZ) has declared a cash dividend of $0.17 per share for the fourth quarter.

When will the dividend be payable to shareholders?

The dividend declared by AZZ Inc. (AZZ) will be payable on May 2, 2024.

What is the record date for shareholders to receive the dividend?

Shareholders of AZZ Inc. (AZZ) must be recorded as of the close of business on April 17, 2024, to receive the dividend.

Will AZZ Inc. (AZZ) continue to pay regular quarterly dividends?

AZZ Inc. (AZZ) currently intends to pay regular quarterly cash dividends for the foreseeable future, subject to individual review and Board discretion.

How does AZZ Inc. (AZZ) determine future dividend payments?

Future dividends by AZZ Inc. (AZZ) will be reviewed on an individual basis and declared by the Board of Directors based on factors like operating results, financial condition, and business outlook.