Westlake Chemical hikes dividend by 40.1% to $0.50 quarterly in 2023
On August 14, 2023, commodity chemicals manufacturer Westlake Corporation (WLK) announced a 40.1% dividend increase to $0.50 quarterly per share. This follows a dividend hike of 20.0 percent last year by WLK. The global manufacturer and marketer of basic chemicals, vinyls, polymers and building products has now raised the dividend 19 straight years.
The next WLK dividend will be payable on September 12, 2023, to stockholders of record on August 25, 2023. This is the 76th successive quarterly dividend that Westlake has declared since completing its initial public offering in August 2004. At a stock price of $133.92 the dividend yield is 1.5%.
“The significant increase in our dividend reflects the strong cash generative business model as we have continued our growth at Westlake,” said Albert Chao, president and chief executive officer of Westlake. “Our Investments in differentiated and specialty products in our Performance and Essential Material (PEM) segment and leading market positions in downstream building products in our Housing and Infrastructure Products (HIP) segment has enhanced the stability of our earnings profile, while our globally advantaged low-cost position provides strong cash generation throughout the business cycle. Alongside our conservatively positioned, strong investment grade balance sheet this supports a meaningfully higher dividend level while continuing to provide us significant capacity to invest in our business to drive long-term shareholder return.”
This is the 76th successive quarterly dividend that Westlake has declared since completing its initial public offering in August 2004.
Westlake Chemical Corporation is a manufacturer and supplier of petrochemicals, polymers and building products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, propylene, chlor-alkali and derivative products, PVC suspension and specialty resins, PVC Compounds, and PVC building products including siding, pipe, fittings and specialty components, windows, fence, deck and film. The company's operating segments are Olefins and Vinyls. Westlake Chemical began operations in 1986 after its first polyethylene plant, an Olefins segment business, near Lake Charles, Louisiana was acquired from Occidental Petroleum Corporation. The company has paid a dividend every year since completing its initial public offering in August 2004.
