Dividend Coverage: This Food Major has Raised Dividend for 54 Consecutive Years; Will Trade Ex Dividend on June 6, 2017

LONDON, UK / ACCESSWIRE / June 5, 2017 / Pro-Trader Daily takes a closer look at Lancaster Colony Corp. (NASDAQ: LANC) as the Company’s stock begins trading ex-dividend on June 06, 2017. In order to qualify for a dividend check, investors must own the stock on or before June 05, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:

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Today, PRO-TD covers ex-dividend news on LANC. Get our free coverage by signing up at:

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Dividend Declared

On May 25, 2017, Lancaster Colony announced that its Board of Directors has declared a quarterly cash dividend of $0.55 per share on its common stock payable June 30, 2017, to shareholders of record on June 08, 2017.

Lancaster Colony stated in the press release that its board voted to continue the cash dividend at the higher level set six months ago. The Company is one of only 14 US companies to have increased regular cash dividends each year for 54 consecutive years.

John B. Gerlach, Jr., Chairman and Chief Executive Officer of Lancaster Colony, said:

“The dividend reflects the company’s continued strong financial position and will be the 216th consecutive quarterly cash dividend paid by the Company since September 1963.”

He noted that the annual payout for the current fiscal year ending June 30, 2017, is $2.15 per share, up from the $1.96 per share paid in fiscal 2016, excluding the $5.00 per share special dividend paid in December 2015.

Lancaster Colony’s indicated dividend represents a yield of 1.72% compared to the average dividend yield for the Consumer Goods sector of 1.72%, and reflects dividend payout of a $2.20 on an annualized basis. Lancaster Colony last increased its dividend in November 2016, where it raised the dividend by 10% from $0.50 per common stock to the current dividend of $0.55 per share.

Lancaster Colony has a dividend payout ratio of 46.03% meaning the Company distributes $0.46 for every $1.00 earned, and the dividend is sufficiently covered by earnings. As per analysts’ estimates, Lancaster Colony is to report earnings of $4.96 per share in the coming year, which means the Company should be able to comfortably cover its annualized dividend. Moreover, as on March 31, 2017, Lancaster Colony had cash and cash equivalents worth $124.75 million and total current assets of $295.32 million. Having this liquidity cushion would allow the Company to absorb any fluctuations in earnings and pay its dividend without interruption.

About the Company

Columbus based Lancaster Colony manufactures and markets specialty food products for the retail and foodservice markets in the United States. Founded in 1961, the Company offers salad dressings and sauces, vegetable dips and fruit dips, frozen garlic breads and frozen Parkerhouse style yeast and dinner rolls. In addition, it manufactures and sells other products to brand license agreements, including Olive Garden’s dressing, Jack Daniel’s mustards, and Hungry Girl flatbreads. The Company’s products are sold through sales personnel, food brokers, and distributors to retailers and restaurants, as well as for industrial customers.

Recent Development for Lancaster Colony

On May 25, 2017, Lancaster Colony’s Board of Directors announced the appointment of David A. Ciesinski as CEO and principal executive officer effective July 01, 2017. Mr. Ciesinski will also join the Company’s Board of Directors effective that same date. John B. (“Jay”) Gerlach, Jr., the Company’s current CEO, will continue his employment and retain his role as Lancaster Colony’s Executive Chairman.

Mr. Ciesinski has served as Lancaster Colony’s President and Chief Operating Officer since joining the Company in April 2016. He is a veteran of the packaged foods industry with a background that includes executive leadership positions at H.J. Heinz Company and Kraft Foods Group, Inc.

Stock Performance

At the closing bell, on Friday, June 02, 2017, Lancaster Colony’s stock marginally slipped 0.06%, ending the trading session at $127.72. A total volume of 127.88 thousand shares were traded at the end of the day, which was higher than the 3-month average volume of 95.82 thousand shares. In the last month and previous twelve months, shares of the Company have advanced 3.06% and 4.53%, respectively. The Company’s shares are trading a PE ratio of 29.88 and have a dividend yield of 1.72%. At Friday’s closing price, the stock’s net capitalization stands at $3.51 billion.

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