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This leading ceiling systems producer raised the quarterly dividend payout to 28 cents per share from 25.4 cents. The amount will be paid out on Nov 16, 2023, to shareholders of record as of Nov 2. Based on the closing price of $70.40 per share on Oct 18, 2023, the stock has a dividend yield of 1.41%.
AWI has been boosting shareholder value through regular dividend payments since December 2018. This marks the company’s 5th consecutive year of increasing its cash dividend.
The company’s healthy balance sheet, coupled with its ability to consistently grow its adjusted free cash flow, supports its commitment to reward shareholders regularly.
Enhancement of Shareholder Value
Armstrong World has been actively managing cash flows, returning considerable free cash to investors through share repurchases and dividends. In October 2022, the company increased its quarterly dividend to 25.4 cents per share, marking a 10% rise from the year-ago period’s levels.
Investors always prefer a return-generating stock. A high-dividend-yielding one is much coveted. It goes without saying that stockholders are always looking for companies with a track record of consistent and incremental dividend payments.
Digital & Technology Initiatives Bode Well
Armstrong World remains focused on digitalization initiatives and technology enhancement. The company is continuously investing in Healthy Spaces and digital initiatives and is optimistic about its growth contributions.
During second-quarter 2023, AWI's healthy spaces and digital growth strategies positively contributed to Mineral Fiber sales. Strong sales growth in the Health Zone product line through its online marketplace helped the company mitigate some of the adverse effects of the overall decline in market activity. Sales through Canopy have surpassed the total sales for the entire year 2022.
Armstrong World’s digital advancement and product innovation make it the only ceiling and specialty walls company across the country.
Price Performance & Earnings Prospect
Armstrong World’s shares have lost 5.2% compared with the Zacks Building Products - Miscellaneous industry’s 8.2% decline in the past three months.
Image Source: Zacks Investment Research
For the to-be-reported quarter, earnings are pegged at $1.30 per share, suggesting a fall of 4.4% from the year-ago quarter’s figure of $1.36. The consensus estimate for net sales is pinned at $331.15 million, indicating a 1.9% increase from the prior-year quarter’s figure. The tepid performance is likely to have stemmed from soft market conditions and continued economic uncertainty.
Zacks Rank & Key Picks
Currently, Armstrong World carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Construction sector are:
FLR benefits from its diverse presence in various markets, allowing it to reduce the impact of market fluctuations. The Zacks Consensus Estimate for FLR’s 2023 sales and EPS indicates growth of 12.6% and 159.8%, respectively, from the previous year’s reported levels.
Mayville Engineering Company, Inc. (MEC - Free Report) operates as a contract manufacturer that serves heavy and medium-duty commercial vehicles, construction, powersports, agriculture and the military, as well as other end markets in the United States.
This Zacks Rank #1 company’s consensus estimate for earnings has increased from 58 cents to 59 cents over the past 60 days.
Willdan Group (WLDN - Free Report) is a nationwide provider of professional, technical and consulting services to utilities, government agencies and private industry.
Willdan Group presently has a Zacks Rank #2. WLDN’s expected earnings growth rate for 2023 is 50%.
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Armstrong World (AWI) Cheers Investors With 10% Dividend Hike
Armstrong World Industries, Inc. (AWI - Free Report) announced a hike of 10% in its quarterly cash dividend.
This leading ceiling systems producer raised the quarterly dividend payout to 28 cents per share from 25.4 cents. The amount will be paid out on Nov 16, 2023, to shareholders of record as of Nov 2. Based on the closing price of $70.40 per share on Oct 18, 2023, the stock has a dividend yield of 1.41%.
AWI has been boosting shareholder value through regular dividend payments since December 2018. This marks the company’s 5th consecutive year of increasing its cash dividend.
The company’s healthy balance sheet, coupled with its ability to consistently grow its adjusted free cash flow, supports its commitment to reward shareholders regularly.
Enhancement of Shareholder Value
Armstrong World has been actively managing cash flows, returning considerable free cash to investors through share repurchases and dividends. In October 2022, the company increased its quarterly dividend to 25.4 cents per share, marking a 10% rise from the year-ago period’s levels.
Investors always prefer a return-generating stock. A high-dividend-yielding one is much coveted. It goes without saying that stockholders are always looking for companies with a track record of consistent and incremental dividend payments.
Digital & Technology Initiatives Bode Well
Armstrong World remains focused on digitalization initiatives and technology enhancement. The company is continuously investing in Healthy Spaces and digital initiatives and is optimistic about its growth contributions.
During second-quarter 2023, AWI's healthy spaces and digital growth strategies positively contributed to Mineral Fiber sales. Strong sales growth in the Health Zone product line through its online marketplace helped the company mitigate some of the adverse effects of the overall decline in market activity. Sales through Canopy have surpassed the total sales for the entire year 2022.
Armstrong World’s digital advancement and product innovation make it the only ceiling and specialty walls company across the country.
Price Performance & Earnings Prospect
Armstrong World’s shares have lost 5.2% compared with the Zacks Building Products - Miscellaneous industry’s 8.2% decline in the past three months.
Image Source: Zacks Investment Research
For the to-be-reported quarter, earnings are pegged at $1.30 per share, suggesting a fall of 4.4% from the year-ago quarter’s figure of $1.36. The consensus estimate for net sales is pinned at $331.15 million, indicating a 1.9% increase from the prior-year quarter’s figure. The tepid performance is likely to have stemmed from soft market conditions and continued economic uncertainty.
Zacks Rank & Key Picks
Currently, Armstrong World carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Construction sector are:
Fluor Corporation (FLR - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FLR benefits from its diverse presence in various markets, allowing it to reduce the impact of market fluctuations. The Zacks Consensus Estimate for FLR’s 2023 sales and EPS indicates growth of 12.6% and 159.8%, respectively, from the previous year’s reported levels.
Mayville Engineering Company, Inc. (MEC - Free Report) operates as a contract manufacturer that serves heavy and medium-duty commercial vehicles, construction, powersports, agriculture and the military, as well as other end markets in the United States.
This Zacks Rank #1 company’s consensus estimate for earnings has increased from 58 cents to 59 cents over the past 60 days.
Willdan Group (WLDN - Free Report) is a nationwide provider of professional, technical and consulting services to utilities, government agencies and private industry.
Willdan Group presently has a Zacks Rank #2. WLDN’s expected earnings growth rate for 2023 is 50%.