RBC Capital Flags Iran Conflict Risk to Sherwin-Williams Margins (SHW)

The Sherwin-Williams Company (NYSE:SHW) is included among the 15 Dividend Stocks to Buy for Steady Income.

On March 19, RBC Capital lowered its price recommendation on The Sherwin-Williams Company (NYSE:SHW) to $376 from $390. It reiterated an Outperform rating on the shares. The analyst said the company’s markets still look choppy. If the Iran conflict stretches beyond 8 to 12 weeks, there could be some pressure on Q2 margins, according to the research note. RBC also noted that the company’s approach to capital allocation has not changed. It continues to prioritize buybacks.

In a CNBC report published on March 2, Sean Russo of Ritholtz Wealth Management pointed to several chemical stocks as the US-Iran conflict unsettled global markets and included Sherwin-Williams in that group. He said that it is the largest paint and coatings manufacturer in the world, and it’s still growing. In Q4 FY2025, consolidated sales rose 5.6% year over year to $5.60 billion. Full-year sales reached a record $23.57 billion.

Adjusted diluted EPS increased 6.7% in Q4 to $2.23, while full-year adjusted EPS edged up 0.9% to $11.43. The company raised its dividend for the 47th straight year and now pays a 1% yield. For 2026, Sherwin-Williams expects sales growth in the low to mid-single-digit range. It also guided for adjusted EPS of $11.50 to $11.90 and plans to open 80 to 100 net new stores during the year.

The Sherwin-Williams Company (NYSE:SHW) manufactures, develops, and sells paint, coatings, and related products to professional, industrial, commercial, and retail customers. Its operations span North and South America, along with the Caribbean, Europe, Asia, and Australia.

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