International Flavors & Fragrances Inc Raises Quarterly Payout by 15%
Board Approves 6th Consecutive Dividend Increase
New York, NY — Isn’t it nice that a company providing you with flavors and fragrances can also provide growing dividends?
On Wednesday, International Flavors & Fragrances Inc (NYSE:IFF) announced that its board of directors has authorized a quarterly dividend of $0.64 per share. This represents a $0.08 or 15% increase from its current quarterly payout of $0.56 per share. The dividend will be payable on October 6, 2016 to shareholders of record as of September 26. (Source: “IFF Increases Quarterly Dividend 15% to $0.64 Per Share,” International Flavors & Fragrances Inc, August 3, 2016.)
After the increase, International Flavors & Fragrances would have an annual dividend yield of 1.87%. In the past five years, the company’s quarterly dividend rate has more than doubled.
“This marks the sixth consecutive year that the Board has approved a double-digit increase in our annual dividend,” said IFF’s Chairman and Chief Executive Officer Andreas Fibig. “This increase, which should result in an approximately 2% dividend yield, combined with our existing share repurchase program demonstrates our confidence in IFF’s long-term growth prospects and commitment to returning 50-60% of adjusted net income to our shareholders.” (Source: Ibid.)
The dividend hike is the latest sign of strength for the flavor and fragrance producer. In the quarter ended April 1, 2016, IFF’s adjusted currency neutral sales improved six percent year-over-year. Currency neutral operating profit grew by seven percent while earnings per share increased 11% from the year-ago period. (Source: “IFF Reports Strong First Quarter 2016 Results,” International Flavors & Fragrances Inc, May 9, 2016.)
Note that the company is scheduled to report second-quarter results on Monday, August 8 after the bell. Analysts are expecting continued growth in both top and bottom-line numbers.