Oil-Dri’s Board of Directors Declares Quarterly Dividends and Approves Two-for-One Stock Split

Rhea-AI Summary

Oil-Dri of America's (NYSE: ODC) Board of Directors has declared quarterly cash dividends and approved a two-for-one stock split. The dividends of $0.31 per share of Common Stock and $0.233 per share of Class B Stock will be paid on November 22, 2024 to stockholders of record as of November 8, 2024. The stock split is subject to stockholder approval at the annual meeting on December 11, 2024. If approved, stockholders of record on December 20, 2024 will receive one additional share for each share held, with distribution expected after market close on January 3, 2025. Trading on a post-split basis is anticipated to begin on January 6, 2025. The company aims to enhance liquidity and attract a broader investor base with this move.

Positive

• Declared quarterly cash dividends of $0.31 per Common Stock share and $0.233 per Class B Stock share
• Approved a two-for-one stock split, potentially increasing stock liquidity
• Continuous cash dividend payments since 1974 with 21 consecutive years of annual increases
• Stock price has doubled since October 2022, indicating strong market performance

Negative

• None.

Insights

Financial Analyst

The announcement of a two-for-one stock split and quarterly dividends by Oil-Dri of America is significant for investors. The stock split, subject to shareholder approval, aims to increase liquidity and potentially attract a broader investor base. This move often signals management's confidence in the company's future growth prospects.

Key points to consider:

• Quarterly cash dividends of $0.31 per Common Stock share and $0.233 per Class B Stock share
• 21 consecutive years of dividend increases, demonstrating a strong commitment to shareholder returns
• The stock price has 100% since October 2022, indicating strong market performance
• Increased liquidity post-split could potentially lead to higher trading volumes and improved price discovery

While stock splits don't directly impact a company's fundamental value, they can positively influence investor sentiment and accessibility. The consistent dividend growth also suggests financial stability and a shareholder-friendly approach, which could support long-term investor confidence.

Market Research Analyst

Oil-Dri's decision to implement a stock split and maintain its dividend policy reflects a strategic move to capitalize on its recent market success. With a market cap of $468,437,706, this action could significantly impact the company's market positioning:

• Increased accessibility: Lower post-split share prices may attract retail investors, potentially broadening the shareholder base
• Enhanced liquidity: Higher trading volumes could lead to tighter bid-ask spreads, benefiting both traders and long-term investors
• Market perception: Stock splits are often interpreted as a signal of management's optimism about future growth prospects
• Index inclusion potential: Improved liquidity and a larger free float could increase the chances of inclusion in broader market indices

The company's track record of 21 years of consecutive dividend increases also positions it as a potential candidate for dividend growth portfolios. This combination of growth-oriented action (stock split) and income stability (dividends) could appeal to a wide range of investment strategies, potentially supporting the stock's valuation in the medium term.

CHICAGO, Oct. 09, 2024 (GLOBE NEWSWIRE) -- The Board of Directors of Oil-Dri Corporation of America (NYSE: ODC) today declared quarterly cash dividends of $0.31 per share of the Company’s Common Stock and $0.233 per share of the Company’s Class B Stock and approved a two-for-one stock split in the form of a stock dividend.

The quarterly cash dividends will be payable on November 22, 2024 to stockholders of record at the close of business on November 8, 2024. Oil-Dri has paid cash dividends continuously each year since 1974 and has increased dividends annually for twenty-one consecutive years.

The stock split is subject to stockholder approval of an amendment to the Company’s Certificate of Incorporation to increase the number of authorized shares of Common Stock to accommodate the stock split. The Company intends to seek stockholder approval for this amendment at its upcoming annual meeting on December 11, 2024.

If the Certificate of Incorporation amendment is approved, the Company expects to file the amendment with the Secretary of State of the State of Delaware and to implement the stock split and authorized share increase promptly following the annual meeting. Following stockholder approval and the filing and effectiveness of the Certificate of Incorporation amendment, stockholders of record at the close of business on December 20, 2024, the record date of the stock split, will receive one additional share of Common Stock for every share of Common Stock held on the record date, and one additional share of Class B Stock for every share of Class B Stock held on the record date. Oil-Dri expects the additional shares will be distributed after market close on January 3, 2025. Shares of Oil-Dri’s Common Stock are expected to begin trading on a post-split basis at market open on January 6, 2025.

Daniel S. Jaffee, Chairman of the Board, President and Chief Executive Officer stated, “Our decision to implement this stock split reflects our desire to strengthen our market position and enhance stockholder value. The trading price of our Common Stock has doubled since October of 2022, and we believe the enhanced liquidity resulting from the stock split will make our shares more affordable and attractive to a broader investor base. We are also pleased to reward our loyal stockholders with quarterly cash dividends."

Stockholders are not required to take any action in order to receive shares pursuant to the stock split, and the book entry accounts of the stockholders of record will automatically be credited with the additional shares representing the stock split. If shares are held in a brokerage account, the additional shares will be distributed to the broker on the stockholder’s behalf. The stock split is being administered by the Company’s transfer agent, Computershare Trust Company, N.A.

The Company’s press release outlining its performance for the fourth quarter of fiscal year 2024 will be issued after the close of the U.S. stock market on Thursday, October 10, 2024. Oil-Dri will host an earnings discussion via a live webcast on Friday, October 11, 2024 at 9:00 a.m. Central Time. Participation details are available on the Company’s website’s Events page.

About Oil-Dri Corporation of America
Oil-Dri Corporation of America (“Oil-Dri”) is a leading manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial and automotive markets. Oil-Dri is vertically integrated which enables the Company to efficiently oversee every step of the process from research and development to supply chain to marketing and sales. With over 80 years of experience, the Company continues to fulfill its mission to Create Value from Sorbent Minerals. To learn more about the Company, visit oildri.com.

Forward-Looking Statements
Certain statements in this press release may contain forward-looking statements, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, that are based on our current expectations, estimates, forecasts and projections about our future performance, our business, our beliefs and our management’s assumptions. In addition, we, or others on our behalf, may make forward-looking statements in other press releases or written statements, or in our communications and discussions with investors and analysts in the normal course of business through meetings, webcasts, phone calls and conference calls. Forward-looking statements can be identified by words such as “expect,” “outlook,” “forecast,” “would,” “could,” “should,” “project,” “intend,” “plan,” “continue,” “believe,” “seek,” “estimate,” “anticipate,” “may,” “assume,” “potential,” “strive,” and similar references to future periods.

Such statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially, including, but not limited to, those described in our most recent Annual Report on Form 10-K and from time to time in our other filings with the Securities and Exchange Commission. Should one or more of these or other risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, intended, expected, believed, estimated, projected, planned or otherwise expressed in any forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except to the extent required by law, we do not have any intention or obligation to update publicly any forward-looking statements after the distribution of this press release, whether as a result of new information, future events, changes in assumptions, or otherwise.

Contact:
Leslie A. Garber
Director of Investor Relations
Oil-Dri Corporation of America
InvestorRelations@oildri.com
(312) 321-1515

FAQ

When will Oil-Dri of America (ODC) pay its next quarterly dividend?

Oil-Dri of America (ODC) will pay its next quarterly dividend on November 22, 2024, to stockholders of record as of November 8, 2024.

What is the amount of Oil-Dri's (ODC) quarterly dividend for Common and Class B Stock?

Oil-Dri (ODC) declared a quarterly dividend of $0.31 per share for Common Stock and $0.233 per share for Class B Stock.

When is Oil-Dri (ODC) planning to implement its two-for-one stock split?

Oil-Dri (ODC) plans to implement the two-for-one stock split after market close on January 3, 2025, subject to stockholder approval at the annual meeting on December 11, 2024.

What is the record date for Oil-Dri's (ODC) proposed stock split?

The record date for Oil-Dri's (ODC) proposed stock split is December 20, 2024, subject to stockholder approval of the necessary amendment to the company's Certificate of Incorporation.