The Marzetti Company, listed on NASDAQ as MZTI, has announced a dividend of $1.00 per share, payable on December 31, 2023. Shareholders of record by December 5, 2023, will qualify for this distribution. The announcement was made on November 19, 2023, highlighting the company’s ongoing commitment to returning value to its investors.
Marzetti has demonstrated a consistent increase in dividends over the past six decades. The company has raised its dividend by an average of 0.1% annually for the last three years. With a current dividend payout ratio of 56.6%, Marzetti’s earnings are sufficient to cover this dividend. Analysts project an earnings per share of $7.31 for the upcoming year, suggesting that the company will maintain its dividend payment with an expected future payout ratio of 54.7%.
Stock Performance and Analyst Ratings
On the day of the announcement, Marzetti’s stock rose by $1.27, reaching a trading price of $165.69. Approximately 42,247 shares were exchanged, which is notably lower than the average volume of 152,128. With a market capitalization of $4.56 billion, the stock has a price-to-earnings (PE) ratio of 26.90 and a beta of 0.42. Over the past year, the stock has fluctuated between a low of $152.95 and a high of $198.39.
Equity analysts have provided various perspectives on Marzetti’s stock. In a report dated September 11, 2023, Stephens maintained an “equal weight” rating and set a target price of $190.00. Weiss Ratings issued a “hold (c)” rating on October 14, 2023. Benchmark raised their price objective from $185.00 to $200.00 in a note on August 22, 2023, while DA Davidson increased their target from $179.00 to $184.00 on November 12, 2023. Currently, analysts rate the stock as “Hold” with an average price target of $191.33 according to MarketBeat.
Company Overview
The Marzetti Company is a subsidiary of Lancaster Colony Corporation, specializing in the manufacturing and marketing of specialty food products. It serves both retail and foodservice channels within the United States. The company’s offerings include frozen garlic bread under the New York BRAND Bakery, Parkerhouse-style rolls under the Sister Schubert’s brand, and a variety of salad dressings among others.
As Marzetti continues to increase its dividend and attract positive analyst sentiment, it reinforces its position as a steady performer in the specialty food sector. Investors will be keenly watching the upcoming dividend payment, which underscores Marzetti’s commitment to long-term growth and shareholder value.
