How WD-40’s (WDFC) Dividend Hike Amid Earnings Miss Has Changed Its Investment Story

• WD-40 Company recently reported quarterly revenues of US$163.5 million, up 4.8% year on year and ahead of analyst expectations, but missed EBITDA estimates, and on December 10, 2025 its board approved an 8%+ increase in the quarterly dividend to US$1.02 per share, payable January 30, 2026.
• This combination of stronger sales, weaker profitability and a higher dividend gives investors a fresh look at how WD-40 is balancing growth, margins and shareholder returns.
• Next, we’ll examine how the earnings miss alongside the increased dividend may influence WD-40’s existing investment narrative and outlook.

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WD-40 Investment Narrative Recap

Owning WD-40 usually means believing in a resilient, global maintenance brand that can steadily grow volumes while protecting margins. The latest quarter’s revenue beat but EBITDA miss, coupled with the dividend hike, does not materially change the near term focus on margin pressure as the key catalyst and risk to watch.

The more than 8% increase in the quarterly dividend to US$1.02 per share is the most relevant announcement here, because it sits directly alongside the recent margin miss and puts extra attention on how comfortably WD-40 can fund rising shareholder payouts if inflation and operating expenses remain a headwind.

Yet behind the higher dividend, investors should be aware of how sustained cost inflation and higher operating expenses could...

Read the full narrative on WD-40 (it's free!)

WD-40's narrative projects $721.1 million revenue and $83.6 million earnings by 2028. This requires 5.6% yearly revenue growth and a $2.7 million earnings decrease from $86.3 million today.

Uncover how WD-40's forecasts yield a $264.50 fair value, a 37% upside to its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community range widely, from about US$32 to US$264.5 per share, showing just how differently people see WD-40’s potential. Set this against the current concern about margin pressure and cost inflation, and it becomes even more important to compare several viewpoints before deciding how this business might perform.

Explore 4 other fair value estimates on WD-40 - why the stock might be worth as much as 37% more than the current price!

Build Your Own WD-40 Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your WD-40 research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free WD-40 research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate WD-40's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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