A 33% Dividend Hike For An Unknown Stock
The company I’m about to talk about is probably one of the smallest you’ll see discussed here.
It’s only worth around $330 million.
Usually, I like dividend companies worth billions of dollars and avoid the little guys.
But I’m going to make an exception.
Quad/Graphics Inc. (ticker: QUAD) just raised its dividend by 33% to $0.10 each quarter.
Quad/Graphics has been around for a while, but just started paying dividends a few years back.
And its payment is already double what it paid in 2024.
I’d be surprised if you’ve heard of Quad/Graphics.
Nobody is talking about it!
Quad/Graphics is a marketing company and one of the largest commercial printers in North America.
Let’s get all of the bad news out of the way first.
Commercial printers are losing revenue as more and more media goes digital.
Quad/Graphics’ stock price took a beating in 2019 and dropped almost 90%.
The financials don’t look great either.
Quad/Graphics’ profit margin is only 0.83%.
Not 83%, but a number less than 1%.
Why are we even looking at Quad/Graphics?
It’s a great buy-low opportunity.
Quad/Graphics’ dividend yield is over 6% and has never been higher.
Don’t forget it just raised its dividend 33%.
And there’s plenty of room to grow with Quad/Graphics’ low dividend payout ratio of 27%.
Plus, Quad/Graphics is generating millions in cash every quarter.
Of course, all of these great dividend numbers don’t mean anything for a company in a dying industry.
Which is why Quad/Graphics is trying to reinvent itself.
Quad/Graphics is moving away from commercial printing and trying to focus more on marketing.
The company has divested a few divisions and has been paying down its debt.
Quad/Graphics is right in the middle of its turnaround.
And there have been some successes.
It means Quad/Graphics will be managing Gorilla Glue’s brand going forward.
It’s a huge win for Quad/Graphics, especially as sales in its printing business continue to decline.
I won’t lie… Quad/Graphics is a risky bet.
The company still has a lot of debt, and the turnaround might not materialize.
But if Quad/Graphics can pull it off, you’ll be happy to get in before it takes off.
And a 6% dividend yield with 33% dividend growth is tough to beat.
You need to act quickly, though.
If you want Quad/Graphics’ higher dividend, you need to own the stock by February 26 (Thursday).
What’s the smallest dividend stock you own?
I wonder how many of you own companies smaller than Quad/Graphics.
Michael Jennings, Editor
Dividend Stocks Research
Category: Dividend Stocks To Buy?, Dividend Yield
