Dividend Growth Stock Overview: Matthews International

Matthews International produces memorials and gravestones, like those found at
Arlington National Cemetery.
Photo courtesy Supermac1961/flickr.com.

About Matthews International

Matthews International is a manufacturer and provider of packaging and memorialization products. The company has 9,400 employees and is headquartered in Pittsburgh, PA. The origins of Matthews International date back to before the Civil War, when John Dixon Matthews emigrated from Sheffield, England and opened up an engraving shop in Pittsburgh. His shop produced a variety of metal products, including military stamping dies and branding irons. Matthews International was incorporated in Pennsylvania in 1902.

Matthews reports financial results in three segments: SGK Brand Solutions, Memorialization, and Industrial.

The SGK Brand Solutions segment is responsible for providing products and services that improve customer’s branding, including marketing and design services, imaging services for packaged goods and packaging. The segment serves the packaging, wallpaper, flooring and automotive industries, among others.

The Memorialization segment produces and distributes bronze and granite memorials, caskets and cremation equipment for the cemetery and funeral home industries. In addition, the segment also produces architectural products designed to commemorate people, events and accomplishments. The segment is the largest of the three by sales, contributing nearly 46% of total company sales in fiscal year 2014.

The Industrial segment produces marking and coding equipment and associated consumables, and order fulfillment systems that are used for tracking product deliveries. According to Matthews’ annual report, a significant portion of the Industrial segment’s revenues comes from the sale of consumables and replacement parts needed by the various pieces of equipment that is sold through the segment.

The company is a member of the S&P Small Cap 600 and Russell 2000 indices and trades under the ticker symbol MATW.

Matthews International’s Dividend and Stock Split History

Matthews International Dividend Growth

Matthews International has compounded its dividend at more than 11% over the last 5 years.

Matthews International has paid cash dividends since 1975 and began increasing dividends in 1996. For the last three years, the company has announced dividend increases in early November, with the stock going ex-dividend during the third week of November. In November 2014, Matthews International announced an 18.2% increase to an annualized rate of 52 cent. I expect Matthews International to announce its 20th year of dividend growth in November 2015.

Matthews International has a good record of dividend growth over time. From 2009 – 2014, the company grew the dividend payout from 26.5 cents to 46 cents, resulting in a compounded dividend growth rate of 11.66%. Over 10 and 20 years, the dividend growth rates are 10.80% and 11.38%, respectively.

Matthews International has split its stock twice. These 2-for-1 splits occurred in June 1998 and September 2001. A single share purchased prior to June 1998 would have split into 4 shares by now.

Matthews International’s Direct Purchase and Dividend Reinvestment Plans

Matthews International does not have a direct purchase or dividend reinvestment plan. In order to invest in Matthews International’s stock, you’ll need to purchase it through a broker. Most brokers will allow you to reinvest dividends without any fee. Ask your broker for more information on how to set this up if you are interested.

Helpful Links

Matthews International’s Investor Relations Website

Current quote and financial summary for Matthews International (finviz.com)

 

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