LONGVIEW, Texas - Friedman Industries, Incorporated (NYSE American: FRD), involved in steel processing, pipe manufacturing, and distribution, announced today a cash dividend of $0.04 per share. The dividend is payable on November 15, 2024, to shareholders of record as of October 25, 2024. This represents the company's 211th consecutive quarterly cash dividend since it went public in 1972.
The company's Board of Directors reviews the dividend policy quarterly and aims to maintain a stable dividend that may be increased as financial conditions and operations allow. The decision to issue dividends considers the company's financial health, operating results, cash needs, and growth plans.
Dividends are subject to the Board's discretion and no assurance can be given about future dividend payments. The company has a longstanding history of distributing dividends each quarter since its initial public offering, but future dividends are not guaranteed.
The information provided in this article is based on a press release statement from Friedman Industries.
InvestingPro Insights
Friedman Industries (NYSE American: FRD) has demonstrated a commitment to returning value to shareholders through consistent dividend payments, a practice it has maintained for over five decades. Notably, the company has sustained dividend payments for 52 consecutive years, underscoring its dedication to shareholder returns. This is an essential consideration for income-focused investors, as highlighted by one of the InvestingPro Tips, which can be further explored among the additional tips listed on InvestingPro.
However, when examining the company's financial health, recent data presents a mixed picture. According to InvestingPro Data, Friedman Industries reported a revenue of $493.5 million over the last twelve months as of Q1 2025, with a gross profit of $59.89 million during the same period. Despite these figures, the company has experienced a revenue decline of 5.65% over the last twelve months and an even steeper quarterly revenue drop of 16.57% in Q1 2025. These metrics may raise concerns about the company's current growth trajectory and profitability.
Furthermore, the company operates with a moderate level of debt and its liquid assets exceed short-term obligations, which suggests a sound liquidity position that supports its ability to meet financial commitments in the near term. This financial stability is crucial for maintaining dividend payments, as indicated by another InvestingPro Tip. Investors seeking a deeper understanding of Friedman Industries’ financial stability and dividend sustainability can find a wealth of additional information and tips on InvestingPro, with numerous other insights available to aid in making informed investment decisions.
While the dividend yield as of the end of July 2024 stood at 1.15%, the company's share price has faced volatility, with a one-year total return of just 1.24%. This suggests that while dividends have been a steady component of shareholder value, market conditions have impacted overall returns. As investors consider the implications of these financial metrics, it is important to note that InvestingPro provides a comprehensive set of additional tips to help navigate the complexities of the market.
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