Acme United (ACU) DIvidends Date & History

Key Takeaways

• Acme United Corporation (ACU) offers a current dividend yield of approximately 1.4%, paid quarterly at $0.16 per share.
• The company has increased its dividend for 20 consecutive years, qualifying as a reliable dividend growth stock.
• Payout ratio stands at a low 25%, indicating strong sustainability backed by earnings.
• Free cash flow (FCF, cash generated after capital expenditures) covers dividends comfortably, with levered FCF of $2.43 million trailing twelve months (TTM).
• Debt levels are manageable at 24% debt-to-equity ratio, supporting ongoing dividend payments.
• Recent ex-dividend date: March 25, 2026; payment date: April 15, 2026.

Dividend Overview

Acme United Corporation (ACU), a supplier of cutting, measuring, first aid, and sharpening products, maintains a consistent quarterly dividend policy. The forward annual dividend is $0.64 per share, yielding about 1.4% based on recent stock prices around $45. This modest yield reflects a focus on growth rather than high payouts, positioning ACU as a dividend growth stock. Payments have been reliable, with the latest declaration of $0.16 per share approved in March 2026, payable April 15 to shareholders of record by March 25. The trailing annual dividend was $0.63, underscoring steady progression without aggressive yields typical of mature high-yield names.

Dividend History and Growth

Acme United has a robust dividend history spanning over 50 years, with payments since at least 1971. The company boasts 20 consecutive years of dividend increases, averaging 5.25% annual growth over the past five years. Recent hikes include a 6.67% rise in 2026 (partial year data) and 3.33% in 2025, from $0.60 annually in 2024. Quarterly payouts have steadily climbed from $0.15 in late 2025 to $0.16 in early 2026. This long-term strategy aligns with sales growth averaging 7% annually over the past decade, funding increases without compromising reinvestment in first aid and cutting tool segments.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable, with a payout ratio of 25.3% of trailing earnings, well below 50-60% thresholds for caution. Earnings per share (EPS) TTM around $2.49 easily covers the $0.64 annual dividend. Free cash flow TTM of $2.43 million provides ample coverage, with FCF payout around 15-32%. Balance sheet strength includes a current ratio of 4.21 (current assets exceed liabilities by over 4x) and total debt-to-equity of 24.42%, down recently with $53 million available under a $65 million credit facility. Lower interest expense from reduced borrowings further bolsters cash for dividends amid stable operations in health care supplies and office products.

Dividend Compared to Industry Peers

In the office supplies and health care supplies space (recently reclassified GICS: Health Care Supplies), ACU's 1.4% yield is modest compared to peers. ACCO Brands offers over 10% yield with a 68% payout, while CompX International (CIX) yields 5-9%. Energizer Holdings (ENR), in adjacent consumer products, provides 6-7%. ACU's lower yield prioritizes growth over income, trading at a premium for its dividend streak and coverage versus higher-yield peers with elevated payouts.

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Is This Stock Attractive for Dividend Investors?

Acme United Corporation (ACU) suits dividend growth investors seeking reliable increases over high yields, given its 20-year streak and 5%+ average annual growth. Conservative long-term holders may appreciate the low 25% payout ratio, strong FCF coverage, and prudent debt management, offering resilience in consumer discretionary cycles tied to school, office, and first aid demand. Income-focused investors might find the 1.4% yield modest versus peers like ACCO (10%+) or ENR (6%+), but ACU's profile emphasizes compounding via reinvested growth capital. Overall financial stability, including high current ratio and availability under credit lines, supports sustained payments, though sector sensitivity to economic shifts warrants monitoring. Balanced portfolios blending growth and income could allocate here for steady appreciation potential.

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