Latest news with #WD-40Company
Yahoo
10-07-2025
- Business
- Yahoo
WD-40 Company Reports Third Quarter 2025 Financial Results
~ Net Sales of Maintenance Products up 6 percent Year-To-Date ~ ~ Management Narrows Net Sales Outlook; Raises Operating Income and EPS Guidance ~ SAN DIEGO, July 10, 2025--(BUSINESS WIRE)--WD-40 Company (NASDAQ:WDFC), a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories and homes around the world, today reported financial results for its third fiscal quarter ended May 31, 2025. Third Quarter Highlights and Summary: Total net sales were $156.9 million, an increase of 1 percent compared to the prior year fiscal quarter. Translation of the Company's foreign subsidiaries' results from their functional currencies to U.S. dollars had an unfavorable impact on net sales of approximately $1.6 million for the current quarter. Maintenance product sales were $150.4 million, an increase of 2 percent compared to the prior year fiscal quarter. Gross margin was 56.2 percent compared to 53.1 percent in the prior year fiscal quarter. Selling, general, and administrative expenses were $51.5 million, up 13 percent compared to the prior year fiscal quarter. Advertising and sales promotion expenses were $9.2 million, down 2 percent compared to the prior year fiscal quarter. These expenses accounted for 5.8 percent of total net sales, down from 6.0 percent in the prior year fiscal quarter. Operating income was $27.4 million, an increase of 1 percent from the prior year fiscal quarter. Net income was $21.0 million, an increase of 6 percent from the prior year fiscal quarter. Diluted earnings per share were $1.54 compared to $1.46 in the prior year fiscal quarter, an increase of 5 percent. "Today we reported third quarter net sales of $156.9 million — a new record high for net sales in a quarter — reflecting a modest 1 percent year-over-year increase," said Steve Brass, president and chief executive officer. "Our core maintenance products grew 2 percent in the quarter and are up 6 percent year-to-date, aligning with our long-term growth objectives. At the same time, we've made significant progress on gross margin recovery, reaching 56 percent in the third quarter — an improvement of 310 basis points over last year. We now expect to exceed our 55 percent long-term gross margin target for the fiscal year 2025, a full year ahead of schedule. While we remain mindful of external risks, we're confident in our trajectory and our ability to deliver on the measures that drive long-term value creation for our stockholders." Net Sales by Segment (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2025 2024 Dollars Change 2025 2024 Dollars Change Americas (1) $ 78,162 $ 75,103 $ 3,059 4 % $ 213,127 $ 202,685 $ 10,442 5 % EIMEA (2) 56,705 59,399 (2,694 ) (5 )% 173,763 162,466 11,297 7 % Asia-Pacific (3) 22,048 20,543 1,505 7 % 69,624 69,415 209 — % Total $ 156,915 $ 155,045 $ 1,870 1 % $ 456,514 $ 434,566 $ 21,948 5 % Third Quarter Highlights by Segment: Americas The Americas segment represented 50 percent of total net sales in the third quarter. Total net sales in the Americas increased 4 percent in the third quarter compared to the prior year fiscal quarter primarily due to a 5 percent increase in net sales of WD-40® Multi-Use Product. WD-40® Multi-Use Product sales increased most significantly in the United States, which increased $3.0 million compared to the prior year fiscal quarter. Sales growth in the United States was largely attributable to increased promotional activity and the timing of customer orders. These increases were slightly offset by lower sales of WD-40® Multi-Use Product in Canada, which were down $0.2 million due to changes in distribution and reduced promotional activity. Sales in Latin America remained constant. Net sales of WD-40 Specialist® increased $0.4 million, or 4 percent, compared to the prior year fiscal quarter primarily due to expanded distribution in the United States. Translation of the Company's foreign subsidiaries' results from their functional currencies to U.S. dollars had an unfavorable impact on net sales in the Americas of approximately $1.8 million for the current quarter. EIMEA The EIMEA segment represented 36 percent of total net sales in the third quarter. Total net sales in EIMEA decreased 5 percent in the third quarter compared to the prior year fiscal quarter primarily due to a 6 percent decrease in net sales of WD-40® Multi-Use Product. WD-40® Multi-Use Product sales decreased $2.6 million resulting from a decrease in sales volume in the EIMEA distributor markets, primarily in Turkey and the Middle East. This was driven by the timing of customer orders as well as operational changes in the region. These decreases were partially offset by increases in most of the EIMEA direct markets. Net sales of WD-40 Specialist® increased $1.3 million, or 15 percent, compared to the prior year fiscal quarter primarily due to higher sales volume as a result of increased promotional activity for our WD-40 Specialist® Bike product line in the DACH region, as well as stronger levels of demand in France and other direct markets. Translation of the Company's foreign subsidiaries' results from their functional currencies to U.S. dollars had a favorable impact on net sales in EIMEA of approximately $0.4 million for the current quarter. Asia-Pacific The Asia-Pacific segment represented 14 percent of total net sales in the third quarter. Total net sales in Asia-Pacific increased 7 percent in the third quarter compared to the prior year fiscal quarter primarily due to a 10 percent increase in sales of WD-40® Multi-Use Product. WD-40® Multi-Use Product sales increased by $0.9 million in China and by $0.6 million in the Asia distributor markets. The growth in China was due to successful promotional programs and expanded distribution. The growth in the Asia distributor markets was driven by successful promotional programs and increased demand, particularly in Indonesia and Taiwan. Net sales of WD-40 Specialist® increased 6 percent primarily due to higher sales volume from successful promotional programs and marketing activities in the Asia distributor markets and China. Homecare and cleaning product sales, which remain a strategic focus for the Company in Australia, decreased 8 percent due to reduced promotional activity and the timing of customer orders. Translation of the Company's foreign subsidiaries' results from their functional currencies to U.S. dollars had an unfavorable impact on net sales in Asia-Pacific of approximately $0.2 million for the current quarter. Net Sales by Product Group (in thousands): Three Months Ended May 31, Nine Months Ended May 31, 2025 2024 Dollars Change 2025 2024 Dollars Change WD-40 Multi-Use Product $ 120,687 $ 119,053 $ 1,634 1 % $ 352,926 $ 333,964 $ 18,962 6 % WD-40 Specialist 22,028 20,224 1,804 9 % 59,762 53,883 5,879 11 % Other maintenance products (4) 7,687 7,885 (198 ) (3 )% 22,538 22,699 (161 ) (1 )% Total maintenance products 150,402 147,162 3,240 2 % 435,226 410,546 24,680 6 % HCCP (5) 6,513 7,883 (1,370 ) (17 )% 21,288 24,020 (2,732 ) (11 )% Total $ 156,915 $ 155,045 $ 1,870 1 % $ 456,514 $ 434,566 $ 21,948 5 % Net sales of maintenance products, which are considered the primary strategic focus for the Company, represented 96 percent of total net sales in the third quarter. Net sales of maintenance products increased 2 percent in the third quarter compared to the prior year fiscal quarter primarily due to higher sales of WD-40® Multi-Use Product in the United States and certain Asia-Pacific regions such as China and the Asia distributor markets. Net sales of homecare and cleaning products represented 4 percent of total net sales in the third quarter. Net sales of homecare and cleaning products decreased 17 percent in the third quarter compared to the prior year fiscal quarter. The Company has announced its intent to sell its homecare and cleaning product portfolios in the Americas and United Kingdom. Dividend and Share Repurchase Update On June 17, 2025, the Company's board of directors declared a regular quarterly dividend of $0.94 per share payable on July 31, 2025 to stockholders of record at the close of business on July 18, 2025. On June 16, 2025, the Company's board approved an extension of the expiration date to August 31, 2026 for the 2023 Repurchase Plan, which became effective on September 1, 2023 and was set to expire August 31, 2025. The Company is currently authorized to acquire up to $50.0 million of its outstanding shares through the expiration date of August 31, 2026, of which $32.2 million remains available for the repurchase of shares of common stock as of May 31, 2025. During the period from September 1, 2024 through the end of the third quarter, the Company repurchased 39,000 shares at a total cost of $9.7 million. The timing and amount of repurchases under the plan are based on terms and conditions as may be acceptable to the Company's chief executive officer and chief financial officer, subject to present loan covenants, and in compliance with all laws and regulations applicable thereto. Updated Fiscal Year 2025 Guidance The Company updated the following fiscal year guidance. This guidance is on a pro forma basis, excluding the full fiscal year financial impact of certain homecare and cleaning products classified as assets held for sale and the impact of the previously disclosed uncertain tax position benefit. Net sales growth from the pro forma 2024 results has been narrowed to be projected to be between 6 and 9 percent, with net sales between $600 million and $620 million, after adjusting for estimated translation impacts of foreign currency. Gross margin for the full year continues to be expected to be between 55 and 56 percent. Advertising and promotion investments continues to be projected to be around 6 percent of net sales. Operating income has been increased to be projected to be between $96 million and $101 million. This range now reflects anticipated growth of between 7 to 12 percent compared to 2024 pro forma results. The provision for income tax continues to be expected to be around 22.5 percent. Diluted earnings per share have been increased and are now expected to be between $5.30 and $5.60 based on an estimated 13.5 million weighted average shares outstanding. This new range reflects anticipated growth of between 12 to 18 percent compared to 2024 pro forma results. This guidance is expressed in good faith and is based on management's current view of anticipated results on a pro forma basis. Unanticipated inflationary headwinds, foreign currency exchange fluctuations, changes in trade tariffs, and other unforeseen events may further affect the Company's financial results. Net sales guidance is adjusted for estimated translation impact of foreign currency use weighted average fiscal year 2024 foreign currency exchange rates. In the event the Company is unsuccessful in the divestiture of its assets currently held for sale, its guidance would be positively impacted by approximately $20 million in net sales, approximately $6 million in operating income, and approximately $0.33 in diluted EPS for the full fiscal year. Webcast Information As previously announced, WD-40 Company management will host a live webcast at approximately 2:00 p.m. PDT today to discuss these results. Other forward-looking and material information may also be discussed during this call. Please visit for more information and to view supporting materials. About WD-40 Company WD-40 Company is a global marketing organization dedicated to creating positive lasting memories by developing and selling products that solve problems in workshops, factories, and homes around the world. The Company owns a wide range of well-known brands that include maintenance products and homecare and cleaning products: WD-40® Multi-Use Product, WD-40 Specialist®, 3-IN-ONE®, GT85®, 2000 Flushes®, no vac®, 1001®, Spot Shot®, Lava®, Solvol®, X-14®, and Carpet Fresh®. Headquartered in San Diego, California, USA, WD-40 Company recorded net sales of $590.6 million in fiscal year 2024 and its products are currently available in more than 176 countries and territories worldwide. WD-40 Company is traded on the NASDAQ Global Select Market under the ticker symbol "WDFC." For additional information about WD-40 Company please visit Forward-Looking Statements Except for the historical information contained herein, this press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect the Company's current expectations with respect to currently available operating, financial and economic information. These forward-looking statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those anticipated in or implied by the forward-looking statements. These forward-looking statements are generally identified with words such as "believe," "expect," "intend," "plan," "project," "could," "may," "aim," "anticipate," "target," "estimate" and similar expressions. These forward-looking statements include, but are not limited to, discussions about future financial and operating results, including: expected benefits from any acquisition or divestiture transaction; acquired business not performing as expected; assuming unexpected risks, liabilities and obligations of the acquired business; disruption to the parties' business as a result of the announcement and acquisition or divestiture transaction; integration of acquired business and operations into the Company; the Company's ability to successfully complete any planned divestiture; expected timing of the closing for the divestiture; expected proceeds from the divestiture; the intended use of proceeds by the Company from the divestiture transaction; impact of the divestiture transaction on the Company's stock price or EPS; growth expectations for maintenance products; expected levels of promotional and advertising spending; anticipated input costs for manufacturing and the costs associated with distribution of our products; plans for and success of product innovation, the impact of new product introductions on the growth of sales; anticipated results from product line extension sales; expected tax rates and the impact of tax legislation and regulatory action; changes in the political conditions or relations between the United States and other nations; changes in trade policies and tariffs; the impacts from inflationary trends, supply chain constraints and supply chain disruptions; changes in interest rates; and forecasted foreign currency exchange rates and commodity prices. The Company's expectations, beliefs and forecasts are expressed in good faith and are believed by the Company to have a reasonable basis, but there can be no assurance that the Company's expectations, beliefs or forecasts will be achieved or accomplished. All forward-looking statements reflect the Company's expectations as of July 10, 2025. We undertake no obligation to revise or update any forward-looking statements. Actual events or results may materially differ from those projected in forward-looking statements due to various factors, including, but not limited to, those identified in Part I—Item 1A, "Risk Factors," in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2024 which the Company filed with the SEC on October 21, 2024, and in the Company's Quarterly Report on Form 10-Q for the period ended May 31, 2025, which the Company expects to file with the SEC on July 10, 2025. Table Notes and General Definitions (1) The Americas segment consists of the U.S., Canada and Latin America. (2) The EIMEA segment consists of countries in Europe, India, the Middle East and Africa. (3) The Asia-Pacific segment consists of Australia, China and other countries in the Asia region. (4) The Company markets its other maintenance products under the GT85® and 3-IN-ONE® brand names. (5) The Company markets its homecare and cleaning products ("HCCP") under the X-14®, 2000 Flushes®, Carpet Fresh®, no vac®, Spot Shot®, 1001®, Lava®, and Solvol® brand names. WD-40 COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited and in thousands, except share and per share amounts) May 31, 2025 August 31, 2024 Assets Current assets: Cash and cash equivalents $ 51,682 $ 46,699 Trade and other accounts receivable, net 112,409 117,493 Inventories 77,249 79,088 Other current assets 25,117 12,161 Total current assets 266,457 255,441 Property and equipment, net 60,101 62,983 Goodwill 96,951 96,985 Other intangible assets, net 2,356 6,222 Right-of-use assets 13,492 11,611 Deferred tax assets, net 1,068 993 Other assets 15,527 14,804 Total assets $ 455,952 $ 449,039 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 27,801 $ 35,960 Accrued liabilities 29,091 31,272 Accrued payroll and related expenses 25,962 26,055 Short-term borrowings 10,264 8,659 Income taxes payable 603 1,554 Total current liabilities 93,721 103,500 Long-term borrowings 85,562 85,977 Deferred tax liabilities, net 9,766 9,066 Long-term operating lease liabilities 8,388 5,904 Other long-term liabilities 1,453 14,066 Total liabilities 198,890 218,513 Commitments and Contingencies Stockholders' equity: Common stock — authorized 36,000,000 shares, $0.001 par value; 19,954,495 and 19,925,212 shares issued at May 31, 2025 and August 31, 2024, respectively; and 13,538,864 and 13,548,581 shares outstanding at May 31, 2025 and August 31, 2024, respectively 20 20 Additional paid-in capital 178,475 175,642 Retained earnings 532,180 499,931 Accumulated other comprehensive loss (28,075 ) (29,268 ) Common stock held in treasury, at cost — 6,415,631 and 6,376,631 shares at May 31, 2025 and August 31, 2024, respectively (425,538 ) (415,799 ) Total stockholders' equity 257,062 230,526 Total liabilities and stockholders' equity $ 455,952 $ 449,039 WD-40 COMPANY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited and in thousands, except per share amounts) Three Months Ended May 31, Nine Months Ended May 31, 2025 2024 2025 2024 Net sales $ 156,915 $ 155,045 $ 456,514 $ 434,566 Cost of products sold 68,804 72,657 204,600 203,684 Gross profit 88,111 82,388 251,914 230,882 Operating expenses: Selling, general and administrative 51,541 45,564 151,054 134,722 Advertising and sales promotion 9,160 9,345 24,957 23,053 Amortization of definite-lived intangible assets 45 303 136 806 Total operating expenses 60,746 55,212 176,147 158,581 Income from operations 27,365 27,176 75,767 72,301 Other income (expense): Interest income 104 136 358 276 Interest expense (887 ) (1,182 ) (2,781 ) (3,336 ) Other income (expense), net 880 (283 ) 813 (516 ) Income before income taxes 27,462 25,847 74,157 68,725 Provision for income taxes 6,485 6,005 4,404 15,865 Net income $ 20,977 $ 19,842 $ 69,753 $ 52,860 Earnings per common share: Basic $ 1.54 $ 1.46 $ 5.13 $ 3.89 Diluted $ 1.54 $ 1.46 $ 5.13 $ 3.88 Shares used in per share calculations: Basic 13,544 13,552 13,548 13,556 Diluted 13,567 13,577 13,570 13,581 WD-40 COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited and in thousands) Nine Months Ended May 31, 2025 2024 Operating activities: Net income $ 69,753 $ 52,860 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 6,099 7,186 Amortization of cloud computing implementation costs 1,265 650 Net gains on sales and disposals of property and equipment (87 ) (141 ) Deferred income taxes (86 ) 539 Tax benefit from release of uncertain tax position (11,929 ) — Stock-based compensation 5,716 5,051 Unrealized foreign currency exchange losses 348 108 Provision for credit losses 1,044 325 Write-off of inventories 693 1,347 Changes in assets and liabilities: Trade and other accounts receivable 4,644 (15,771 ) Inventories (2,776 ) 9,137 Other assets (6,387 ) (186 ) Operating lease assets and liabilities, net (17 ) (26 ) Accounts payable and accrued liabilities (10,001 ) (347 ) Accrued payroll and related expenses (205 ) 1,915 Other long-term liabilities and income taxes payable (94 ) 2,177 Net cash provided by operating activities 57,980 64,824 Investing activities: Purchases of property and equipment (3,177 ) (3,359 ) Proceeds from sales of property and equipment 329 457 Net cash used in investing activities (2,848 ) (9,103 ) Financing activities: Treasury stock purchases (9,739 ) (8,094 ) Dividends paid (37,504 ) (35,239 ) Repayments of long-term senior notes (800 ) (800 ) Net proceeds (repayments) from revolving credit facility 1,605 (11,592 ) Shares withheld to cover taxes upon conversions of equity awards (2,883 ) (2,420 ) Net cash used in financing activities (49,321 ) (58,145 ) Effect of exchange rate changes on cash and cash equivalents (828 ) (419 ) Net increase (decrease) in cash and cash equivalents 4,983 (2,843 ) Cash and cash equivalents at beginning of period 46,699 48,143 Cash and cash equivalents at end of period $ 51,682 $ 45,300 View source version on Contacts Media and Investor Contact:Wendy KelleyVice President, Stakeholder and Investor Engagementinvestorrelations@ +1-619-275-9304 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-07-2025
- Business
- Yahoo
Those who invested in WD-40 (NASDAQ:WDFC) three years ago are up 43%
Buying a low-cost index fund will get you the average market return. But across the board there are plenty of stocks that underperform the market. Unfortunately for shareholders, while the WD-40 Company (NASDAQ:WDFC) share price is up 36% in the last three years, that falls short of the market return. Zooming in, the stock is up just 4.1% in the last year. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During three years of share price growth, WD-40 achieved compound earnings per share growth of 8.7% per year. In comparison, the 11% per year gain in the share price outpaces the EPS growth. This suggests that, as the business progressed over the last few years, it gained the confidence of market participants. It is quite common to see investors become enamoured with a business, after a few years of solid progress. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of WD-40, it has a TSR of 43% for the last 3 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! WD-40 provided a TSR of 5.7% over the last twelve months. But that return falls short of the market. The silver lining is that the gain was actually better than the average annual return of 5% per year over five year. It is possible that returns will improve along with the business fundamentals. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling. But note: WD-40 may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
29-04-2025
- Automotive
- Business Wire
The WD-40 ® Brand Repair Challenge Returns
SAN DIEGO--(BUSINESS WIRE)--WD-40 ® Brand is launching the 2025 Repair Challenge, an annual opportunity for DIYers and skilled professionals to showcase their creativity, craftsmanship and the power of a great repair, with one standout fix earning a $5,000 grand prize. Through July 14, participants can enter the contest by submitting a photo or video of their repair project – whether it's tools, equipment, or other items – for a chance to win cash, gift cards or a WD-40 Brand Carhartt® tool bag. 'In a world where we often choose to buy new rather than repair what we already have, this challenge celebrates the doers who roll up their sleeves repairing, restoring and renovating. They inspire others to reuse, reinvent and be part of a more responsible way to get the Job Done Right ®, all while getting the chance to be rewarded for their hard work and ingenuity,' said Erin Bala, vice president of U.S. marketing and Americas innovation at WD-40 Company. The grand prize winner will be awarded $5,000, with second place winner receiving $3,500 and third place winner receiving $2,000. Participants will also have the chance to win a $100 Lowe's® gift card through weekly sweepstakes. Additional prizes will be awarded to: Four fourth-place winners: $500 Lowe's gift card. Three fifth-place winners: $250 Lowe's gift card. Thirteen sixth-place winners: Exclusive WD-40 Brand Carhartt tool bags. The contest is open to U.S. residents from April 29 to July 14. Entries can be submitted at No purchase necessary. About WD-40 ® Brand WD-40 Brand offers more than 30 innovative, quality products to get the Job Done Right ®. The same spirit of innovation for solving the toughest challenges, which led to the creation of the original WD-40 Multi-Use Product, also drove the brand to grow its family of offerings to include the WD-40 Specialist ® line – best-in-class products that deliver superior performance for industry professionals. WD-40 Specialist products provide specialized, heavy-duty solutions in factories, facilities, automotive garages, and on farms around the world. The line consists of lubricants, penetrants, greases, cleaners and degreasers, and rust-management solutions scientifically designed for the world's toughest jobs. For additional information about WD-40 Brand products, please visit Carhartt® is a registered trademark of Carhartt, Inc. Lowe's® is a registered trademark of Lowe's Companies, Inc.
Yahoo
26-04-2025
- Business
- Yahoo
WD-40 Company (WDFC): One of the Overlooked Dividend Stocks to Buy Now
We recently published a list of the 10 Overlooked Dividend Stocks to Buy Now. In this article, we are going to take a look at where WD-40 Company (NASDAQ:WDFC) stands against other overlooked dividend stocks. In recent times, dividend investing—also known as equity income—has fallen out of favor. Once a widely followed and dependable strategy, it has gradually been overshadowed. The strong capital gains delivered by growth stocks appear to have shifted investors' attention away from the more stable and consistent returns that come with dividend-paying stocks. However, the recent market downturn, combined with the economic impact of Trump's trade policies, has brought renewed attention and appeal to these types of stocks. The S&P Dividend Aristocrats Index, which tracks the performance of companies with at least 25 consecutive years of dividend growth, has fallen by a little over 2% since the start of 2025, compared with a 6% fall in the broader market. Dividend stocks have seen mixed results over different economic cycles—performing well in some downturns and falling behind in others. They generally outpaced the broader market during the recessions starting in July 1981, March 2001, and December 2007. However, their performance lagged during the shorter recessions in 1980 and 2020. This was mainly due to dividend cuts from major firms, along with limited exposure to fast-growing tech names. For context, the steepest drop in dividends came during the 2008–09 financial crisis, when S&P dividend payouts declined by 24%, though investors still received 76% of their income. That said, while the possibility of dividend reductions is a valid concern and a potential drawback of this strategy, it shouldn't be a reason to overlook dividend stocks altogether. When incorporated thoughtfully, they can still play a valuable role in a well-rounded investment portfolio. M&G Investments noted that dividends serve as more than just income—they also signal a company's financial health and management's confidence. While short-term market returns often hinge on stock valuations, dividends play a much more substantial role in driving equity returns over longer periods, such as 10 or 20 years. The report also mentioned, citing Bloomberg's data, that dividends play a vital role in long-term returns. Over the last 25 years, nearly half of the total gains from US stocks have come from reinvested dividends and the power of compounding. During this period, the broader market delivered an average annual return of 7.4%, with 55% attributed to rising stock prices and the remaining 45% coming from reinvested dividend income. The fact that dividends are not guaranteed highlights a deeper financial story behind corporate decisions. Companies must carefully weigh the trade-off between returning profits to shareholders and keeping enough earnings on hand to support future expansion. Getting this balance right is a strategic task. A particularly high dividend payout ratio—typically above 75%, though this varies by sector—can raise red flags about sustainability. When too much profit is paid out, there's little room left to increase dividends down the line. This could eventually lead a company to scale back or even stop its dividend payments altogether, which may hold back both business growth and long-term gains in share value. Given this, we will take a look at some overlooked stocks that pay dividends. A colour palette showcasing the range of aerosol and trigger sprays in an organised display. For this list, we thoroughly reviewed reputable sources such as Forbes, Morningstar, Barron's, and Business Insider and searched for stocks that remain under the radar but have strong balance sheets and sound financials. In addition, these lesser-known dividend companies also boast dividend growth track records, which make them a reliable option for income investors. After compiling our data, we picked 10 companies with the highest number of hedge fund investors, as per Insider Monkey's Q4 2024 database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 26 WD-40 Company (NASDAQ:WDFC) is an American company that specializes in household and multi-use products. The company holds a diverse portfolio of recognized brands in maintenance, homecare, and cleaning products, with its offerings now sold in over 176 countries and territories around the globe. WD-40 Company (NASDAQ:WDFC) reported mixed earnings in fiscal Q2 2025. It posted revenue of over $146 million, which grew by 5% from the same period last year. However, the revenue missed analysts' estimates by $8.3 million. Total sales from maintenance products reached $139.3 million, reflecting a 6% increase from the same fiscal quarter a year earlier. Gross margin improved to 54.6%, up from 52.4% in the prior year period. Meanwhile, selling, general, and administrative expenses rose to $49.0 million, marking a 9% increase compared to the previous year's fiscal quarter. WD-40 Company (NASDAQ:WDFC) ended the quarter with $53 million available in cash and cash equivalents. Year-to-date, its operating cash flow came in at $23 million. The company currently offers a quarterly dividend of $0.94 per share and has a dividend yield of 1.68%, as of April 25. It is one of the best overlooked stocks that pay dividends, as the company has been growing its payouts for the past 17 consecutive years. Overall, WDFC ranks 8th on our list of the best overlooked dividend stocks to invest in. While we acknowledge the potential of WDFC as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than WDFC but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at .
Yahoo
21-04-2025
- Business
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WD-40 Company (WDFC): Among Most Expensive Stocks Insiders Are Buying After Trump's Tariff Rollout
We recently published a list of . In this article, we are going to take a look at where WD-40 Company (NASDAQ:WDFC) stands against other most expensive stocks insiders are buying after Trump's tariff rollout. Wall Street banks have sharply cut their targets for the broader market index due to growing fears about the economic fallout from new tariffs, writes the Financial Times. Since the tariff announcement on April 2, the broader market index has dropped nearly 7%. Major banks now expect lower market gains in 2025, with some analysts predicting a possible bear market directly triggered by presidential policy shifts. Amid tariff wars and market uncertainty, insider trading often draws attention. Insider stock purchases may signal executive confidence, while sales aren't necessarily negative—they could reflect personal or diversification choices. It's best to view insider trading in context with a company's financials and market conditions. Today, we're highlighting most expensive stocks that insiders have been buying in April. Using Insider Monkey's trading screener, we looked for companies with share prices of at least $30 and insider purchases between April 2 and April 21. From there, we ranked the top 12 stocks based on the highest average purchase price per share. Stocks that were recently covered were excluded from this list. Most of those can be seen on this list of the 19 mid- and large-cap stocks insiders are buying after Trump's tariff rollout. Our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds, focusing on insider trading and stock picks from hedge fund investor newsletters and conferences. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A colour palette showcasing the range of aerosol and trigger sprays in an organised display. WD-40 Company (NASDAQ:WDFC) develops and sells maintenance, homecare, and cleaning products worldwide. Its product lineup includes multi-purpose sprays, specialty lubricants, toilet cleaners, carpet stain removers, and hand cleaners under various brands like WD-40, 3-IN-ONE, and Lava. The company sells through hardware stores, automotive outlets, online retailers, and more, and is headquartered in San Diego, California. WD-40 Company (NASDAQ:WDFC) is also one of the . For the second quarter of fiscal 2025, WD-40 (NASDAQ:WDFC) reported total net sales of $146.1 million, a 5% increase compared to the same quarter of the previous year. Maintenance product sales grew by 6%, totaling $139.3 million, while gross margin improved to 54.6%. Net income surged 92% to $29.9 million, driven by an $11.9 million tax benefit, and diluted earnings per share rose to $2.19. Excluding the one-time tax benefit, net income grew by 15%. On April 11, the company's CFO Kathleen Sara Hyzer bought $57,044 worth of WD-40 shares at an average price of $222.83 per share. Currently, the stock trades at $222.76, having dropped 8.21% since the beginning of the year and 1.82% over the past 12 months. Overall, WDFC ranks 2nd on our list of most expensive stocks insiders are buying after Trump's tariff rollout. While we acknowledge the potential of WDFC, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WDFC but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
