EMN – Eastman Chemical Company
1. Reliable & Growing Dividend
- EMN has increased its dividend for 16 consecutive years.
- Quarterly payout: $0.83/share (~$3.32 annually).
- Payout ratio: ~41%, keeping payments well-supported.
2. Strong Yield & Total Returns
- Current yield: ~4.3%, significantly above the ~2.1% industry average.
- Free cash flow coverage of dividends: ~55–67%.
- Combined dividend & buyback yield: ~5–6%.
3. Consistent Dividend Growth
- 1-year growth: ~2.5%; 5-year CAGR: ~5%; 10-year CAGR: ~8%.
- Steady growth enhances income and compound returns over time.
4. Fundamentals That Sustain It
- EBITDA and earnings cover the dividend comfortably.
- Robust cash flow supports reliable payouts.
- Latest ex-dividend date: June 13, 2025.
Investment Thesis
Eastman Chemical (EMN) offers a compelling balance for long-term dividend investors: a reliable 4%+ yield, a long streak of annual payout increases, and solid earnings/cash-flow coverage. Modest dividend growth helps build yield-on-cost over time. Prudent capital allocation—juggling dividends, buybacks, and strategic growth—secures the income stream while positioning the company for future expansion in specialty and sustainable materials.
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Disclaimer
The user DerpOtron9k holds no position in NYSE:EMN. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
