Very few consumer products trace their origin to a Cold War aerospace program, but this one genuinely does. It started as a corrosion-fighting coating for missile skins, got smuggled home by factory workers who found it fixed squeaky hinges, and became one of the most recognized maintenance brands in existence. It just posted 24% sales growth in a single quarter.
WD-40 Company (WDFC)
Business Quality Score: 98 / 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.
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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 San Diego-based maker of maintenance products, best known for its namesake lubricant sold in more than 176 countries. Founded in 1953 as Rocket Chemical Company, it now operates across the Americas, EMEA, and Asia-Pacific, generating most sales from maintenance products while expanding its WD-40 Specialist line.
Dividend engine: 17 years, well covered
WD-40 pays $4.08 per share annually, a 2.04% yield, with a 62.01% payout ratio and a 5-year dividend-growth rate of +40.00%. That payout ratio sits in a healthy middle zone for a high-margin consumer products company, leaving real room to keep growing the dividend. The 17-year streak reflects a business that converts sales into cash consistently, helped by near-zero brand-switching risk.
Q3 fiscal 2026: a blowout quarter
For Q3 fiscal 2026, ended May 31, 2026, WD-40 reported net sales of $195.1 million, up 24% year over year, with diluted EPS of $2.24, up 45%, and adjusted EPS of $2.33, up 51%, per the July 9, 2026 release on BusinessWire. Operating income jumped 47% to $40.3 million, with growth broad-based across all three regions. Management raised full-year adjusted EPS guidance to $6.05-$6.35 and authorized a new $100 million buyback.
Growth story: China, India, and a promo that worked
WD-40’s growth is increasingly international. China is generating double-digit growth, while India, run through a Pidilite partnership, is growing sales over 20% and ranks as the company’s second-largest opportunity. A “King of the Hill” promotional campaign with Disney and Home Depot delivered a 75% incremental sales lift, and Specialist sales grew 22-31% globally.
Forty tries to protect a nuclear missile
WD-40 exists because a Cold War missile contractor needed to stop rust on the Atlas ICBM, and chemists failed 39 times before formula number 40 worked. Convair employees smuggled cans home to fix squeaky hinges, and that unauthorized use became the entire consumer business. The recipe has never been patented and still sits in a bank vault.
Final take
WD-40 offers a 2.04% yield, $4.08 annual dividend, 17 years of hikes, +40.00% 5-year dividend growth, and a 62.01% payout ratio. The business is backed by a blowout quarter, raised guidance, and real momentum in China and India, but premium valuation and reliance on continued international growth are real risks. Business Quality Score: 98. That’s elite territory, though investors should watch whether this growth rate holds before paying up further.