CLARCOR Dividend Growth

Dividend Growth Stock Overview: CLARCOR, Inc.

Purolator is one of many brands that have powered 30+ years of dividend growth at CLARCOR.
Photo courtesy Don O'Brien/flickr.com.

About CLARCOR, Inc.

CLARCOR is a filtration engineering company with multiple brands serving the industrial, energy, and engine industries, among others.  In addition to the filtration business, the company has a packaging business that contributes a relatively small amount of sales and earnings (less than 10%) to the bottom line.  The company is headquartered in Franklin, TN, with a heritage that dates back to the founding of J.L. Clark in 1904 to produce decorative metal packaging.

The company’s businesses are organized into three segments: Engine/Mobile, Industrial/Environmental, and Packaging.

The Engine/Mobile segment manufactures products that extend engine life by filtering contaminants that would be included in the air and fluid flow through the engine, and protects the environment by removing contaminants before they are released into the environment.  Applications include trucks, agricultural machinery, construction and mining equipment, power generation equipment, and locomotives.  Brands falling under this segment include Baldwin Filters, Hastings Premium Filters, ClarkFilter, and CLARCOR.

The Industrial/Environmental segment manufactures filtration products to protect individuals, animals and the environment.  Applications include specialty industrial process filters, pharmaceutical processes, beverages, the oil & natural gas industry, aircraft refueling, and sewage treatment & water recycling.  Brands under this segment include BHA, Purolator, AirGuard, PecoFacet, and bioprocessH2O.

The Packaging segment manufactures containers and enclosures.  These products are used for specialty foods (e.g., tea, coffee, spices, candy, etc.), smokeless tobacco products, lip balms, dry cell batteries, and canisters for film and candles.  This segment is represented by the original J. L. Clark brand.

The company does business worldwide, but over two-thirds of the business is done in the United States.

The company is a member of the S&P Mid Cap 400 index and S&P’s High Yield Dividend Aristocrats index, and trades under the ticker symbol CLC.

CLARCOR’s Dividend and Stock Split History

CLARCOR has paid dividends since 1920 and has raised them since 1983.  The company announces annual dividend increases at the end of September, with the increased dividend going to shareholders of record in mid-October.

CLARCOR has compounded its payout at an average rate of 15.6% over the last 5 years and 12.2% over the last 10 years.

CLARCOR has split its stock twice – a 2-for-1 split in April 2005 and a 3-for-2 split in April 1998. You would now have three shares of CLARCOR stock for each share of stock you purchased before early 1998.

CLARCOR’s Direct Purchase and Dividend Reinvestment Plans

CLARCOR has both direct purchase and dividend reinvestment plans. You will need to be an existing shareholder to participate in both plans. The fee structure is favorable for investors, with no fees on any purchases, either through direct purchase or dividend reinvestment, although there is a $10 fee to set up an account. The minimum direct purchase amount is relatively high at $500.

There are fees when selling shares. Specifically, you’ll pay a commission of $15 plus a transaction fee of 4 cents per share. All the fees will be deducted from the proceeds of the sale of the shares.

Helpful Links

CLARCOR, Inc.’s Website

Current quote and financial summary for CLARCOR, Inc. (finviz.com)

Information on the direct purchase and dividend reinvestment plans for CLC

Want to find out about more great dividend growth stocks?

Check out the list of current S&P Dividend Aristocrats.