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How Investors May Respond To WD-40 (WDFC) Lifting Its Quarterly Dividend Over 8 Percent

Simply Wall St·12/20/2025 02:13:48
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  • On December 10, 2025, WD-40 Company’s board increased its quarterly dividend by more than 8% to US$1.02 per share, payable on January 30, 2026 to shareholders of record as of January 16, 2026.
  • This move extends WD-40’s long history of relatively steady dividend payments and reinforces the impression that current earnings comfortably support its higher payout.
  • We’ll now explore how this sizeable dividend increase, backed by earnings coverage, may influence WD-40’s existing investment narrative and outlook.

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WD-40 Investment Narrative Recap

To own WD-40, you generally need to believe its core maintenance brands can keep compounding earnings while margin initiatives offset cost and currency pressures. The latest 8%+ dividend hike underlines current earnings strength, but does not materially change the near term focus on executing the home care and cleaning divestiture and managing inflationary and Asia Pacific demand risks.

This dividend increase follows WD-40’s strong fourth quarter and full year 2025 results, where both sales and net income grew year on year. That earnings momentum helps explain why the company appears comfortable lifting its cash returns to shareholders, even as it pursues geographic expansion, premium product growth and supply chain efficiencies as key earnings catalysts.

Yet behind the higher dividend, investors should be aware of the growing pressure from higher operating expenses and inflation, which 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 an $2.7 million earnings decrease from $86.3 million today.

Uncover how WD-40's forecasts yield a $264.50 fair value, a 30% upside to its current price.

Exploring Other Perspectives

WDFC 1-Year Stock Price Chart
WDFC 1-Year Stock Price Chart

Four members of the Simply Wall St Community currently value WD-40 anywhere between about US$32 and US$265 per share, showing how far opinions can stretch. When you set those views against the company’s emphasis on premium products and margin expansion, it becomes even more important to weigh several perspectives before deciding how its performance might evolve.

Explore 4 other fair value estimates on WD-40 - why the stock might be worth as much as 30% 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.