BOSTON - Cabot Corporation (NYSE: NYSE:CBT), a global specialty chemicals and performance materials company, announced an increase in its quarterly dividend. On Monday, the Board of Directors declared a dividend of $0.43 per share, which marks an 8% rise from the previous $0.40 per share. This new dividend is payable on June 14, 2024, to shareholders recorded by May 31, 2024.
Sean Keohane, President and CEO of Cabot Corporation, commented on the dividend increase, linking it to the company's optimistic long-term perspective on its business fundamentals and its ability to sustain strong cash flows. This financial strategy aims to support both significant growth investments and consistent returns to its shareholders.
With this latest increase, the annualized dividend rate will now be $1.72 per share, up from $1.60 per share. This move continues Cabot's tradition since 1968 of providing a growing dividend to its investors.
Cabot Corporation, based in Boston, Massachusetts, operates globally, specializing in a variety of products including reinforcing carbons, specialty carbons, battery materials, engineered elastomer composites, and aerogel, among others.
The announcement is based on a press release statement and does not include any speculative information. It should be noted that forward-looking statements in the press release are subject to risks and uncertainties that might cause actual results to differ from expectations. These risks are detailed in the company's Annual Report on Form 10-K for the fiscal year ended September 30, 2023.
InvestingPro Insights
Following the recent announcement of Cabot Corporation's (NYSE: CBT) dividend increase, an analysis of the company's financial metrics and market performance offers a broader perspective on its current standing. According to InvestingPro data, Cabot Corporation's market capitalization stands at $5.31 billion, reflecting the market's valuation of the company.
The company's Price to Earnings (P/E) ratio is currently at 12.32, suggesting that the stock may be trading at a reasonable price relative to its earnings. This is further supported by an adjusted P/E ratio for the last twelve months as of Q1 2024, which is slightly lower at 12.11.
InvestingPro Tips highlight several strengths in Cabot Corporation's financial approach and market behavior. Notably, the company has been recognized for raising its dividend for 12 consecutive years, a testament to its commitment to providing consistent returns to shareholders. Furthermore, the stock is known to trade with low price volatility, which might appeal to investors seeking stability in their portfolio.
InvestingPro data also reveals a strong 3-month price total return of 23.25%, indicating robust recent performance in the market. Additionally, the stock is trading near its 52-week high, at 97.24% of the peak value, which aligns with the company's positive momentum reflected in the dividend increase.
For investors interested in deeper analysis and more InvestingPro Tips, they can explore the full suite of insights on Cabot Corporation, which includes 13 additional tips, by visiting https://www.investing.com/pro/CBT. To enhance the value of their investment research, users can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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