Greif, Inc. GEF announced a 10.7% hike in its quarterly dividend payout. This is in sync with its long-standing commitment to returning capital to shareholders.
Details of GEF’s Quarterly Dividend Hike
Greif will pay the new quarterly dividend of 62 cents on its Class A Common Stock and 93 cents per share on its Class B Common Stock on July 1, 2026, to shareholders of record as of June 17, 2026. The raised dividend takes the company’s dividend yield from the current 3.5% to 3.9%.
Greif has a three-year dividend growth rate of 3.8%. It has a payout ratio of 57.8%.
Greif’s industry peer Sonoco Products Company SON has a quarterly dividend of 54 cents. Sonoco has a payout ratio of 37.1%. Sonoco’s current indicated annual dividend is one of the highest in the industry at $2.16.
GEF’s another peer AptarGroup, Inc. ATR has a quarterly dividend of 48 cents. AptarGroup has a payout ratio of 33.5%. AptarGroup’s current indicated annual dividend is $1.92.
GEF’s Cash Position & Balance Sheet
At the end of second-quarter fiscal 2026, the adjusted free cash flow improved to $179.3 million from $86.6 million, aided by working capital management and lower cash interest tied to the company’s reduced leverage. Greif ended the quarter with $286.1 million in cash and cash equivalents, and a total debt of $1.01 billion.
The increased dividend reflects the company’s strength in free cash flow generation and its balance sheet while investing in high-return organic growth opportunities. Greif remains committed to maintaining leverage below 2.0X.
Greif Stock’s Price Performance
GEF shares have gained 17.7% in the past year against the industry's 12% decline.
GEF’s Zacks Rank & Stock to Consider
The company currently has a Zacks Rank #3 (Hold).
A better-ranked stock from the Industrial Products sector is Tennant Company TNC. TNC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Tennant has an average trailing four-quarter earnings surprise of 40.8%. The Zacks Consensus Estimate for TNC’s 2026 earnings is pinned at $5.15 per share. The company’s shares have gained 19.4% in a year.
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Sonoco Products Company (SON): Free Stock Analysis Report
AptarGroup, Inc. (ATR): Free Stock Analysis Report
Greif, Inc. (GEF): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).