Newell Brands, Inc. announced that its Board of Directors and the management team updated its dividend policy to focus on funding supply chain investments and de-leverage. Newell Brands reduced its quarterly dividend to 7 cents a share. In February, the company declared a quarterly dividend of 23 cents a share.
Newell said, “Over the past several months, as previously communicated, the management team has undertaken a refresh of the corporate strategy, encompassing a comprehensive assessment of where Newell Brands stands versus best-in-class competition on the key capabilities required to win in this industry, an updated and integrated set of where to play and how to win choices, an assessment of the talent and culture required to enact the strategy refresh, as well as an evaluation of the capital allocation priorities required to support the new strategy.
“Management continues to expect a strong rebound in Newell Brands’ cash flow performance in 2023 and remains confident about the cash flow generation potential of the business. The company is deliberately resetting its capital allocation priorities and right-sizing the dividend to fund high-return internal supply chain consolidation investment opportunities while enabling faster de-leveraging of the balance sheet and providing additional financial flexibility.
“Today’s update to Newell Brands’ dividend policy is aligned with the broader strategy refresh and management’s recommended capital allocation framework, with the dividend remaining an important priority going forward. The company plans to share additional details about the strategy refresh within the next few months.”
The dividend is payable June 15, 2023, to common stockholders of record at the close of business on May 31, 2023.
Newell’s Outdoor & Recreation segment includes Campingaz, Coleman, Contigo, ExOfficio, and Marmot. The company’s other brands include Rubbermaid, Sharpie, Graco, Rubbermaid Commercial Products, Yankee Candle, Paper Mate, FoodSaver, Dymo, EXPO, Elmer’s, Oster, NUK, and Spontex.
