International Flavors & Fragrances (IFF) will raise its quarterly dividend by another 2.7 percent to $0.77 per share in 2020, matching last year's 2.7 percent dividend hike and also marking the 11th consecutive year of annual dividend increases by the flavors and fragrances manufacturer. Based on calendar years the company has actually hiked its dividend for 18 consecutive years.
The next dividend is payable on October 5, 2020 to shareholders of record as of September 24, 2020. A new annual rate of $3.00 per share yields 2.5% at a stock price of $121.
In the press release announcing this dividend hike together with second quarter 2020 results, IFF Executive Vice President and CFO, Rustom Jilla commented, "Even given our diverse and resilient product portfolio, COVID-19 resulted in a sales decline in the second quarter. This, along with higher pandemic related costs, more than offset the benefit of tight expense control. Nevertheless, even during this unprecedented global crisis, the strength of our business was apparent in our robust cash flow, which allowed us to continue to reduce net debt while also returning capital to our shareholders. Reflecting our confidence, we are pleased to announce we are raising our quarterly dividend. This marks eleven years of consecutive dividend increases and underscores our confidence in our business, long-term strategy and proven strong cash flow generation capability."
International Flavors & Fragrances hiked its dividend by double digits five times between 2010 and 2020. The company did not announce a dividend increase in 2010, but paid a higher dividend that year compared to 2009, resulting in a 18 year record based on annualized dividend hikes in a calendar year.
International Flavors & Fragrances Inc. creates, manufactures and supplies flavors and fragrances for the food, beverage, personal care, and household products industries. The company operates through three segments: Taste, Frutarom (acquired in 2018) and Scent. Its products are sold to manufacturers of perfumes and cosmetics, hair and other personal care products, soaps and detergents, meat and other processed foods, beverages, snacks and savory foods, sweet and baked goods, and pharmaceutical and oral care products, among others. International Flavors & Fragrances has key basic research and development centers in Tilburg, the Netherlands, Neuilly and Grasse, France, and Nanjing, China. The company has been paying a dividend to shareholders since at least 1982.