The Marzetti Company, listed on NASDAQ under the ticker symbol MZTI, has announced a dividend of $1.00 per share, set to be paid on December 31, 2023. Shareholders of record as of December 5 will be eligible for this distribution. The ex-dividend date is also December 5, marking the last day for investors to purchase shares to qualify for the dividend.
Over the past three years, Marzetti has raised its dividend by an average of 0.1% annually. The company has a remarkable record of increasing its dividend for 62 consecutive years, showcasing its commitment to returning value to shareholders. Currently, Marzetti has a dividend payout ratio of 56.6%, indicating that its dividend payments are well-supported by earnings. Analysts project that the company will earn $7.31 per share next year, suggesting that the anticipated $4.00 annual dividend will remain sustainable, with a future payout ratio expected to be around 54.7%.
Stock Performance and Analyst Ratings
On the trading day following the announcement, shares of Marzetti rose by $1.27, reaching $165.69. A total of 42,247 shares changed hands, significantly lower than the average trading volume of 152,128 shares. The company’s market capitalization stands at approximately $4.56 billion, with a price-to-earnings ratio of 26.90 and a beta of 0.42. Over the last year, Marzetti’s stock has traded between a low of $152.95 and a high of $198.39.
Recent analyst reports reflect a mixed outlook for Marzetti’s stock. On September 11, Stephens reiterated an “equal weight” rating with a target price of $190.00. Weiss Ratings maintained a “hold (c)” rating on October 14. Benchmark raised its price objective from $185.00 to $200.00, endorsing a “buy” rating in a note dated August 22. DA Davidson increased its target price from $179.00 to $184.00 on November 12, assigning a “neutral” rating. Currently, one analyst has rated Marzetti stock as a “buy,” while three have issued a “hold” rating, resulting in an average rating of “hold” and a target price of $191.33 according to data from MarketBeat.
About Marzetti Company
The Marzetti Company is a subsidiary of Lancaster Colony Corporation, focusing on the manufacturing and marketing of specialty food products for both retail and foodservice sectors in the United States. It operates through two primary segments: Retail and Foodservice. The product range includes frozen garlic bread under the New York BRAND Bakery, Parkerhouse style rolls under Sister Schubert’s, and various salad dressings under the Marzetti, Simply Dressed, Cardini’s, and Girard’s brands. The company also produces vegetable and fruit dips, croutons, salad toppings, and frozen pasta, contributing to its diverse portfolio in the food industry.
This significant dividend announcement underscores Marzetti’s ongoing commitment to its shareholders while reflecting its stable earnings performance and strong market position.
