What is Going on with AptarGroup?
AptarGroup (ATR) stocks rose Friday after the company announced an increase to it's quarterly dividend.
The company said April 15 that it's next quarterly distribution will be $0.38 per share, payable on May 19 to holders of record as of April 28. The company's last quarterly payment was $0.36.
"In 2020, we returned $93 million dollars to shareholders and with this current increase," Stephan Tanda, the company's president and CEO said in a press release. "We are on track for our 28th consecutive year of paying an increased annual dividend. By executing on our balanced capital allocation strategy and investing in new technologies and capacity, while we strengthen our competitive position through complementary acquisitions and partnerships, Aptar has grown and achieved a Total Shareholder Return of 102% over the past five years. This return has exceeded the returns of our Peer Group and the S&P Midcap 400.”
What This Means for ATR?
Many investors prefer to buy dividend stocks because of the steady cash returns they provide. Companies with a long history of regular dividend increases are particularly prized.
While many companies return capital to shareholders through repurchase programs, those can often be stopped and started with little notice to shareholders.
While dividends aren't guaranteed, companies with dividend programs tend to see them as an important part of the company's relationship with shareholders and typically make efforts to keep making those payments.
This means that a dividend increase can be seen as a signal that a company's management believes it will be able to keep making payments at that level for the forseeable future.
ATR has an Overall Score of 71. Find out what this means to you and get the rest of the rankings on ATR!
AptarGroup is a leading global supplier of dispensing systems such as aerosol valves, pumps, and closures to the consumer goods and pharmaceutical markets. With the bulk of its annual net sales coming from Europe and the United States, Aptar aims to increase its presence in Asia and Latin America. Aptar's pharmaceutical division generates roughly one third of group sales but almost two thirds of group profits. We expect management to make more healthcare-related acquisitions in the coming years.
