1.66% Dividend Yield, 17 Years of Dividend Hikes – A Household “Fix‑It” Brand With Global Shelf Space
This company sells a tiny product with an outsized presence: the kind of staple that lives in garages, factories, and toolboxes because it solves a real problem fast. It’s best known for a flagship multi‑use maintenance product, but it has quietly built a broader maintenance lineup that rides the same brand trust and distribution muscle. The business is global, sold in more than 176 countries and territories, and it behaves like a consumer brand disguised as an industrial essential—steady demand, pricing power over time, and a culture that treats brand equity like an operating asset.
WD-40 (WDFC)
Financial Score: 97 / 99
Quick Tip
To keep your portfolio strong, stay on top of the financials for each company you hold. Solid companies mean better returns, so be sure to check in on their quarterly and annual numbers.Interesting stocks usually score 80+ on the Financial Scale, with top players hitting 90+. If that score dips below 80, it might be a good time to consider cutting ties before things take a turn.WD-40 Company (WDFC) is a global marketing organization focused on products that “solve problems” in workshops, factories, and homes, with a brand portfolio led by WD‑40 Multi‑Use Product and WD‑40 Specialist, plus other maintenance brands (3‑IN‑ONE and GT85) and a smaller homecare and cleaning group. In fiscal 2025, the company recorded net sales of $620.0 million and emphasized that maintenance products are the primary strategic focus, representing 96% of Q1 FY2026 net sales. The business is reported by three trade blocs—Americas, EIMEA (Europe, India, Middle East, Africa), and Asia‑Pacific—so performance can be driven as much by distributor timing and FX translation as by end‑user demand.
Dividend profile: 17 raises, a 62% payout, and a very intentional cadence
WDFC’s dividend setup is: 1.66% dividend yield, $4.08 annual dividend, 17 consecutive years of dividend growth, +40.00% 5‑year dividend growth, and a 62.10% payout ratio. That payout ratio is meaningfully higher than the classic “industrial dividend” playbook, but for a brand business with consistent cash conversion it can still be balanced—especially when the company is not capex‑heavy. The key is that the board clearly treats the dividend as a priority lever: it just raised the quarterly dividend to $1.02 per share, more than 8% above the prior quarter’s level.
Business and reporting: Q1 FY2026
For the first quarter of fiscal 2026, WD‑40 reported total net sales of $154.423 million, gross margin of 56.2%, operating income of $23.258 million, net income of $17.451 million, and diluted EPS of $1.28. SG&A expense was $55.336 million, advertising and sales promotion was $8.189 million (5.3% of net sales), and total operating expenses were $63.574 million. By segment, Americas net sales were $71.873 million, EIMEA was $58.675 million, and Asia‑Pacific was $23.875 million, with FX translation contributing about $3.4 million of favorable impact to net sales (and a constant‑currency view implying $151.0 million).
Business growth: Specialist momentum, e‑commerce lift, and guidance‑backed runway
The growth engine right now is the “beyond the blue can” expansion: WD‑40 Specialist net sales were $22.538 million in Q1 FY2026, up 18% year over year, while e‑commerce sales were up 22%. Direct markets—83% of global sales—grew 8% in the quarter, even as distributor markets saw timing‑related softness, which management framed as order timing rather than end‑user demand deterioration. For the full fiscal year 2026, the company reaffirmed guidance calling for net sales of $630 million to $655 million and diluted EPS of $5.75 to $6.15, with operating income projected at $103 million to $110 million and gross margin of 55.5% to 56.5%.
Fun Fact: It literally tracks a “nearly 4x” growth gap for the flagship product
Management said that after 72 years, the company has captured only about 25% of its global growth potential for the WD‑40 Multi‑Use Product, leaving approximately $1.4 billion of opportunity to nearly quadruple current sales. That’s an unusually explicit “white‑space” claim for a consumer‑style brand, and it frames growth as distribution and penetration, not invention. It also explains why the company keeps investing in trade bloc execution, new launches, and channel expansion even when near‑term quarter noise shows up in distributor order timing.
Final Take – Top‑tier score with a brand‑driven cash engine
WDFC’s dividend snapshot is: 1.66% yield, $4.08 annual dividend, 62.10% payout ratio, 17 years of dividend hikes, and +40.00% 5‑year dividend growth. Q1 FY2026 (ended Nov. 30, 2025; reported Jan. 8, 2026) delivered $154.423 million net sales, 56.2% gross margin, $23.258 million operating income, $17.451 million net income, and $1.28 diluted EPS, while management reaffirmed FY2026 ranges of $630–$655 million net sales and $5.75–$6.15 diluted EPS. Financial Score: 97 — genuinely top‑tier; companies above 90 are typically considered the truly reliable names, and 93 places WD‑40 in that high‑quality bucket.
Someone’s sitting in the shade today because someone planted a tree a long time ago. ― Warren Buffett.
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