Griffon pays $2.00 special dividend

On April 20, 2023, the Griffon Corp (GFF) board approved two actions to return additional capital to shareholders. First, Griffon increased its share repurchase authorization to $258 million from the prior unused authorization of $58 million. Second, the Griffon Board declared a special cash dividend of $2.00 per share, payable on May 19, 2023 to shareholders of record as of the close of business on May 9, 2023.

“Over the past year, our financial performance has improved despite headwinds in the housing market and the global economy. We remain confident about our business and operating strategy,” said Ronald J. Kramer, Chairman and CEO of Griffon. “The special dividend announced today demonstrates our commitment to providing immediate value to our shareholders, and reflects the confidence of Griffon’s Board and management regarding our outlook.”

“We have a strong balance sheet with no significant debt maturities until 2028. Regarding our capital allocation, we expect to utilize excess cash to further reduce debt, and will use the special dividend and increased repurchase authorization to return value to shareholders,” Mr. Kramer continued. “Based on our confidence in the Company’s continued strong operating performance and free cash flow, we believe Griffon’s best days are ahead of us.”

The dividend yield for Griffon is 1.37% at a stock price of $28.75. The company hiked its dividend by 11.1% in 2022 and also paid a $2.00 per share special dividend last summer.

Griffon Corporation, founded in 1959, is a holding company. Griffon currently conducts its operations through three reportable segments: Consumer and Professional Products (CCP), Home and Building Products (HBP) and Defense Electronics. CPP conducts its operations through AMES, a manufacturer of branded consumer and professional tools and products for home storage and organization, landscaping, and enhancing outdoor lifestyles. CPP's brands include True Temper, AMES, and ClosetMaid. HBP conducts its operations through Clopay, a manufacturer and marketer of garage doors and rolling steel doors. Brands include Clopay, Ideal, Holmes and CornellCookson. Defense Electronics conducts its operations through Telephonics Corporation, a provider of highly sophisticated intelligence, surveillance and communications solutions for defense, aerospace and commercial customers.