HOUSTON - Westlake Corporation (NYSE: WLK), a global manufacturer and supplier of various materials and products, has declared a regular dividend of $0.525 per share for the third quarter of 2024. This dividend is scheduled to be paid on December 12, 2024, to shareholders who are on record as of November 26, 2024.
This latest dividend declaration continues Westlake's long-standing practice of providing returns to shareholders, a tradition that began with its first dividend issued on November 11, 2004. Over the past two decades, the company has consistently paid and increased its dividend, showcasing a commitment to its shareholders.
The company's announcement also included a cautionary note that its forward-looking statements, such as future dividend payments, are subject to significant risks and uncertainties. These statements are not guarantees of future performance and could be affected by various factors. Investors are advised to refer to the company's filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2023, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, for a more detailed understanding of these risks.
Westlake operates on a global scale, with a presence in Asia, Europe, and North America. It is known for providing essential materials and innovative products used in a wide range of applications, including housing, construction, packaging, healthcare, automotive, and consumer goods.
The information regarding the dividend and the company's operational highlights is based on a press release statement from Westlake Corporation.
In other recent news, Westlake Chemical (NYSE:WLK) Corporation experienced a challenging third quarter with net sales of $3.1 billion and net income of $183 million, affected by operational issues and adverse weather conditions. The company's performance was impacted by a $75 million after-tax expense for mothballing two European epoxy units and $120 million in losses due to extended maintenance outages. BMO Capital Markets and RBC Capital Markets adjusted their outlook on Westlake Chemical, reducing their price targets while maintaining a Market Perform and Outperform rating respectively.
These recent developments indicate Westlake Chemical's robust financial position, despite uncertainties in the chlor-alkali market and a softer near-term macroeconomic environment. BMO Capital expects the company to become more proactive in mergers and acquisitions, leveraging its strong balance sheet. RBC Capital, on the other hand, sees positive aspects for Westlake Chemical, including the stabilization of Polyethylene Methanol volumes, which are expected to rise in the fourth quarter.
Westlake Chemical maintains a strong cash position of $2.9 billion and is targeting cost savings of $125 million to $150 million for 2024. The company also anticipates a decrease in interest rates in 2025, which could stimulate demand in the housing market. The company's strategic focus on cost savings and its robust position across the PVC value chain are expected to help it navigate the current market environment.
InvestingPro Insights
Westlake Corporation's commitment to shareholder returns is further underscored by recent financial data from InvestingPro. The company's dividend yield stands at 1.66%, with a notable dividend growth of 5% over the last twelve months as of Q3 2024. This aligns with the company's two-decade history of consistent dividend payments and increases mentioned in the article.
Despite challenging market conditions, Westlake has maintained a solid financial position. The company boasts a market capitalization of $16.31 billion, reflecting its significant presence in the global materials and products sector. While revenue growth has seen a slight decline of 6.88% over the last twelve months, Westlake's quarterly revenue growth of 0.06% as of Q3 2024 suggests a potential stabilization in its business operations.
InvestingPro Tips highlight that Westlake's stock is trading below its fair value based on analyst price targets, with a fair value of $157.5 compared to its previous closing price of $126.69. This could indicate potential upside for investors considering the company's long-term prospects and dividend history.
For readers interested in a deeper analysis, InvestingPro offers 12 additional tips for Westlake Corporation, providing a comprehensive view of the company's financial health and market position.
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