IFF develops and sells chemicals used in home care and other types of products. (Pictured: Hawaiian Aloha and Thai Dragon Fruit scented Gain detergent.) Photo: Flickr.com/Mike Mozart
About International Flavors and Fragrances
International Flavors and Fragrances manufactures chemicals used to improve the taste and scent of a variety of products in the food and beverage, personal care and household products industries. The company was formed in 1958 through the merger of chemical companies Polak & Schwarz and van Ameringen-Haebler. International Flavors manufactures its products across 34 countries and sells to customers in over 150 countries. The company is headquartered in New York City and employs over 6,700 people worldwide.
Company sales are distributed across the globe, with roughly 30% of annual sales each from Europe, Africa & the Middle East and Greater Asia; 25% of annual sales from North America; and 15% from Latin America. The company’s customer base is somewhat concentrated, with the largest customer representing nearly 12% of annual sales and the largest 25 customers accounting for more than 50% of net sales. The company divides up its businesses into two segments: (1) Flavors and (2) Fragrances, each of which provides about 50% of annual sales.
The Flavors segment develops chemicals that are used across the food and beverage industries, while the Fragrances segment develops chemical compounds used in household products like laundry detergents and fabric softeners, bar soap, perfumes and colognes, and hair care products.
The company is a member of the S&P 500 index and trades under the ticker symbol IFF.
International Flavors and Fragrances’ Dividend and Stock Split History
International Flavors and Fragrances has more than doubled its dividend over the last 5 years.
International Flavors and Fragrances has paid dividends since at least 2000 and grown them since 2003. The company generally announces dividend increases in early August, with the stock going ex-dividend in late September. In August 2016, the company’s announced an 14.3% increase to its payout, to an annualized rate of $2.56 per share.
The company has a good record of dividend growth and has recently been increasing its dividend very quickly, with double digit increases since 2011. Over the last 5 years, the company has compounded dividends at an average rate of 15.65%, while over the last decade the company’s annual dividend growth rate is 12.11%.
International Flavors and Fragrances has not split its stock since at least 2000.
Over the 5 years ending on December 31, 2015, International Flavors and Fragrances stock appreciated at an annualized rate of 18.62%, from a split-adjusted $50.48 to $118.53. This significantly outperformed the 10.20% compounded return of the S&P 500 index over the same period.
International Flavors and Fragrances’ Direct Purchase and Dividend Reinvestment Plans
International Flavors and Fragrances has both direct purchase and dividend reinvestment plans. However, to participate in either plan, you must be a current shareholder. That means that you must own shares in your own name and not that of your brokerage (i.e., “in street name”). If you do own shares in a brokerage account, you’ll have to have them transferred into your name and then deposited into the plan to begin participating.
Once you’re a plan participant, the minimum for optional additional investments is $25.
The plans are very favorable for investors, as the fees for purchases and sales are minimal. There are no fees when you purchase shares through the plan, either directly or through dividend reinvestment. When you sell your shares in the plan, you’ll pay a fee of $5 per sell order along with a 5 cent per share commission. These fees will be deducted from the sales proceeds.
Helpful Links
International Flavors and Fragrances’ Investor Relations Website
Current quote and financial summary for International Flavors and Fragrances (finviz.com)
Thanks for the overview of IFF. Interesting stock with some tremendous growth over the last few years. Dividend growth is fantastic, but cancelled out somewhat by similar growth in the stock price, so yield is low at 1.85%
Well worth looking at, though!