3. Oil-Dri Corporation of America (NYSE:ODC)
Short Percentage of Shares Outstanding: 2.21%
On June 8, Oil-Dri Corporation of America (NYSE:ODC) reported third-quarter revenue of $126.33 million, compared with $115.5 million in the prior-year period. President and CEO Daniel Jaffee highlighted that, following two quarters of difficult year-over-year comparisons, the company returned to growth with record third quarter consolidated net sales increasing 9%. Combined with disciplined expense management, the sales growth contributed to a 25% increase in net income despite ongoing inflationary pressures on the cost of goods sold. Management also noted that strong cash generation enabled the company to continue returning capital to shareholders and expressed confidence in achieving its annual plan and surpassing the previous year’s net income. However, geopolitical uncertainty and higher transportation and input costs remain potential headwinds.
On June 3, the board of directors of Oil-Dri Corporation of America (NYSE:ODC) approved a two-cent increase in the company’s quarterly cash dividend. The new dividend was raised to $0.225 per share of common stock and $0.168 per share of Class B stock, representing an approximate 10% increase for both share classes. The dividends will be payable on August 21 to shareholders of record as of August 7. In addition, the board authorized the repurchase of up to 500,000 shares of common stock, supplementing the shares already available under previous repurchase authorizations and demonstrating the company’s ongoing commitment to shareholder returns.
Founded in 1941 and headquartered in Chicago, Illinois, the Oil-Dri Corporation of America (NYSE:ODC) is a manufacturer of specialty sorbent products mined from specialty minerals. The company also produces widely used clay- and diatomaceous earth-based cat litter under major consumer brands like Cat’s Pride and Jonny Cat, alongside private-label offerings.
