As an investor who is driven by the notion of the companies returning more and more to their shareholders through various types of dividend-related events (such as increases and decreases of a company's annualized dividend and the announcement of special dividends) I wanted to highlight one company that has recently announced a 25% increase in its quarterly payout.
PolyOne Corporation (POL) – On Wednesday, October 8, PolyOne Corporation, which now possesses a forward yield of 1.15% ($0.40/share annualized), announced a 25% or $0.02/share increase, from its prior payout of $0.08/share, for the upcoming quarter.
Headquartered in Avon Lake, Ohio, PolyOne Corporation provides specialized polymer materials, services, and solutions with operations in specialty polymer formulations, color and additive systems, plastic sheet and packaging solutions, and polymer distribution.
As a result of Wednesday’s closing price of $34.64/share, PolyOne Corporation now has a market capitalization of $3.17 billion, a P/E ratio of 31.46, and a forward yield of $1.15% ($0.40). Its trend behavior, although fairly negative in both the near-term and long-term (given the fact shares are trading 3.87% below their 20-DSMA, 8.24% below their 50-DSMA, and 8.42% below their 200-DSMA), should get a boost from its recent dividend-related now. If the company can continue to return value to its shareholders through increased dividend payouts, then there’s a very good chance we could see its trend behavior reverse course over the next 6-12 months.
Recent Collaboration with Water Step
On September 15th PolyOne announced a collaboration with WaterStep in an effort to improve product design and performance for WaterStep's M-100 water purification system. “Specifically, PolyOne's high impact Geon™ formulation increased durability of the system to facilitate air-drop deliveries into remote areas in distress or recovering from natural disasters”.
Michael A. Garratt, President, Performance Products and Solutions, PolyOne Corporation noted that "It was extremely gratifying for PolyOne to collaborate with WaterStep and its ongoing mission of providing access to clean water to those in need”. If the company can continue to form key partnerships, as was the case with WaterStep, then there’s a very good chance the company can meet or even possibly exceed full-year EPS and Revenue estimates.
Conclusion
For those of you who may be considering a position in PolyOne Corporation, I strongly recommend keeping a close eye on the company's dividend behavior over the next 18-24 months as it should directly impact both the company’s near-term trend behavior and the long-term value of its shares.
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