Universal Corporation Continues Tradition Of Dividend Growth Amidst Strategic Board Changes

$UVV

Universal Corporation (NYSE:UVV) has made headlines with its dividend adjustments and key changes to its Board of Directors. The company declared an increase in its quarterly dividend to $0.82 per share, marking the 55th consecutive year of dividend growth.

This adjustment reflects an annualized rate of $3.28 per common share, yielding approximately 5.66% based on the closing price of $58.00 per share on May 19. The dividends are payable on August 4, to shareholders of record as of July 14. This increment is a testament to Universal’s financial health and its board’s confidence in the company’s long-term strategy.

Over the past decade, the annual dividend has grown from $2.04 in 2015 to $3.24 in the most recent fiscal year, achieving a compound annual growth rate of about 4.7%. The modest pace, this growth aligns with Universal’s historical emphasis on financial stability and shareholder value.

In parallel with these financial announcements, Universal has also revealed significant changes to its governance structure. Fay Manolios has been appointed to the Board of Directors, effective June 1, bringing over 25 years of strategic development and human resources experience. Her previous tenure at Capital One Financial Corporation highlighted her capability in spearheading significant corporate initiatives, which will be invaluable to Universal. The board and the company’s leadership have expressed confidence that Manolios’ insights will greatly contribute to the ongoing strategic initiatives, particularly in the tobacco and ingredients sectors.

Concurrently, Michael T. Lawton will retire from the Board after nine years of dedicated service, including leadership on the Audit Committee. His contributions have been pivotal during a period of considerable growth and strategic redirection for Universal. The company has extended its gratitude for his service and his role in guiding significant corporate decisions.

These governance changes occur as Universal continues to leverage its extensive network of farmers and partners across more than 30 countries, ensuring the delivery of high-quality, traceable products to meet evolving customer needs. Universal Corporation is navigating through a transformative phase with strategic governance enhancements and a reinforced dividend policy, reflecting its steady financial position and commitment to shareholder returns. The market position and enhance its operational capabilities, ensuring long-term growth and stability.

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