HILLIARD, Ohio - Advanced Drainage Systems, Inc. (NYSE: NYSE:WMS), a leader in water management solutions, has declared an increase in its annual cash dividend to shareholders by 14%, reflecting a robust balance sheet and significant cash generation.
The company's President and CEO, Scott Barbour, attributed this increase to the company's strong financial performance and its strategy of returning capital to shareholders.
Today, the company announced that its Board of Directors has approved an annual cash dividend of $0.64 per share, up from the previous year's dividend. This increase is part of ADS's ongoing commitment to share its financial success with its shareholders.
In the fiscal year 2024, ADS has returned $251.3 million to its shareholders through dividends and share repurchases. The company's confidence in its financial flexibility has been bolstered by its operational excellence initiatives, allowing it to continue investing in key areas such as safety, capacity, and productivity improvements.
Shareholders of record as of the close of business on May 31, 2024, will receive the quarterly cash dividend of $0.16 per share on June 14, 2024. This announcement is based on the company's current expectations and projections and is part of its long-term strategy to manage and distribute its resources effectively.
Advanced Drainage Systems is recognized for its innovative approach to managing water resources. Its subsidiary, Infiltrator Water Technologies, along with ADS, provides leading solutions for stormwater drainage and onsite septic wastewater across a variety of markets, including commercial, residential, infrastructure, and agriculture.
The company prides itself on its expansive manufacturing and distribution network, as well as being one of the largest plastic recycling companies in North America, which aligns with its commitment to environmental sustainability.
The information in this article is based on a press release.
InvestingPro Insights
Advanced Drainage Systems, Inc. (NYSE: WMS) has demonstrated a strong commitment to rewarding its shareholders, as evidenced by the recent announcement of a 14% increase in its annual cash dividend. This decision aligns with the company's history of consistent dividend payments, having maintained them for 11 consecutive years. Additionally, the company's dividend growth has been notable, with an increase of 16.67% over the last twelve months as of Q3 2024.
Investors considering Advanced Drainage Systems as a potential addition to their portfolios should note that the company is currently trading at a high Price / Earnings (P/E) ratio of 27.7. While this may suggest a premium valuation, it is important to consider it in the context of the company's overall financial health and growth prospects. The company's robust return on assets, which stood at 16.35% in the last twelve months as of Q3 2024, showcases its efficient use of assets in generating earnings.
With a market capitalization of $13.67 billion, Advanced Drainage Systems operates with a moderate level of debt and has liquid assets that exceed short-term obligations, as per InvestingPro Tips. This financial stability is a significant factor for investors who prioritize a company's ability to withstand market fluctuations and maintain steady operations.
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The next earnings date for Advanced Drainage Systems is set for May 16, 2024, providing investors with an upcoming opportunity to assess the company's performance and strategic direction. Meanwhile, the company continues to trade near its 52-week high, with a price 99.44% of this peak, reflecting strong investor confidence and market sentiment.
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