NLI Holdings (NL) DIvidends Date & History

Key Takeaways

• NL Industries pays a quarterly dividend of $0.10 per share, translating to an annualized payout of $0.40 per share and a dividend yield of approximately 6.96% as of mid-2026, significantly above the specialty chemicals sector average.
• The company has raised its regular quarterly dividend for two consecutive years, from $0.07 in 2023 to $0.10 in 2026, and has also issued periodic special dividends, including $0.43 in 2024 and $0.21 in 2025.
• Earnings coverage is inconsistent. NL posted a net loss of $37.8 million in fiscal 2025, meaning the dividend was not covered by net income. The payout ratio based on trailing earnings remains elevated and a point of caution.
• A strong cash position of approximately $114 million and minimal debt of under $1 million provide a liquidity buffer that supports ongoing dividend payments even during periods of weak earnings.
• Dividend sustainability depends heavily on the performance of Kronos Worldwide, NL's equity-method investment in titanium dioxide (TiO2) pigments, making the payout vulnerable to commodity cycle downturns.

Dividend Overview

NL Industries, Inc. (NYSE: NL), a Dallas-based holding company operating through its subsidiary CompX International and its non-controlling interest in Kronos Worldwide, maintains a quarterly dividend program that currently pays $0.10 per share. At prevailing share prices near $5.75, this equates to a trailing twelve-month dividend yield of approximately 6.96% — a level that places the stock firmly in high-yield territory relative to the broader market and the specialty chemicals industry. The company distributes dividends on a quarterly schedule, with recent payments made in March, June, September, and December. NL resumed its regular dividend program in 2020 after a multi-year hiatus, and since then has steadily increased its quarterly payout from $0.04 to the current $0.10 per share. In addition to regular quarterly distributions, the company has occasionally declared special cash dividends funded by excess liquidity or one-time gains, adding to total shareholder returns. Given its above-average yield and modest but growing base dividend, NL sits at the intersection of high-yield and emerging dividend growth categories.

Dividend History and Growth

NL Industries has a dividend history marked by both interruption and revival. After paying a steady $0.125 quarterly dividend from 2010 through 2013, the company suspended its dividend entirely from 2014 through 2019 — a six-year gap during which it redirected capital toward balance sheet strengthening and litigation settlement reserves. Dividends resumed in 2020 at a modest $0.04 per quarter, and the company has since demonstrated a consistent upward trajectory: $0.06 quarterly in 2021, $0.07 in 2022–2023, $0.08 in 2024, $0.09 in 2025, and $0.10 in 2026. This represents a compound annual growth rate of approximately 20% in the regular dividend over the past six years. NL has also supplemented its ordinary dividend with irregular special dividends, including $0.35 per share in August 2022, $0.43 in August 2024, and $0.21 in August 2025. While the company does not yet carry a multi-decade dividend growth streak like many traditional dividend aristocrats, the pattern of regular increases since 2020 signals management's growing commitment to shareholder cash returns, supported by the holding company's lean operating structure and substantial cash reserves.

Dividend Sustainability and Payout Ratio

Dividend sustainability is the central question for NL investors. The company reported a net loss attributable to common stockholders of $37.8 million, or $0.77 per share, in fiscal 2025 — meaning the annual dividend of $0.36 per share paid during that year was not covered by earnings. On a trailing twelve-month basis, the payout ratio exceeds 100% of net income by most calculations. Free cash flow coverage also deteriorated: operating cash flow swung to negative $36.4 million in 2025 compared to positive $25.6 million in 2024, driven partly by a $50 million environmental remediation settlement payment. The dividend cash payout ratio has been flagged as dangerously high by multiple research platforms. However, these headline figures warrant context. NL holds approximately $114 million in cash against only about $0.5 million in total debt, creating a considerable liquidity cushion. Furthermore, the 2025 loss was heavily influenced by non-cash items — including a $19.7 million pension settlement loss and $13.6 million in unrealized marketable securities losses — rather than fundamental operational deterioration at its CompX subsidiary, which actually grew segment profit by 33% in 2025. Investors should closely monitor whether earnings at Kronos Worldwide recover in 2026, as this will largely determine whether the current dividend level can be sustained without eroding the cash base.

Dividend Compared to Industry Peers

NL Industries operates in the specialty chemicals and engineered components space, where most publicly traded peers offer significantly lower dividend yields. Large-cap competitors and adjacent companies — such as SHW (Sherwin-Williams) with a yield near 0.9%, PPG (PPG Industries) near 1.7%, and LIN (Linde) near 1.3% — prioritize share buybacks and reinvestment over high cash distributions. Even among smaller specialty chemical firms such as ASH (Ashland) and MTX (Minerals Technologies), yields typically range from 1% to 3%. NL's roughly 7% yield stands out dramatically within this cohort. That said, NL's elevated yield is partially a function of its small market capitalization (around $280 million), limited institutional ownership (approximately 10.7%), and a stock price that has been compressed by legacy litigation concerns and earnings volatility. Income-oriented investors may find NL's yield compelling relative to peers, but they should recognize that the premium reflects the market's assessment of higher uncertainty rather than a straightforward bargain.

AI Screener

For investors seeking to identify high-yield dividend stocks, emerging dividend growth names, or value opportunities within the specialty chemicals and industrials sectors, Tickeron's AI Screener offers a powerful, AI-driven discovery platform. The AI Screener allows users to filter thousands of stocks and ETFs using customizable criteria including dividend yield, market capitalization, industry classification, technical indicators, price patterns, volatility metrics, and proprietary AI-generated signals. Rather than manually sifting through financial statements and charts, traders and investors can use the screener to efficiently surface stocks matching their specific income, growth, or momentum objectives — including dividend-paying names like NL Industries. Whether you are searching for steady income generators, turnaround candidates, or breakout patterns, the AI Screener streamlines the entire discovery process with data-driven precision.

Is This Stock Attractive for Dividend Investors?

NL Industries presents a mixed profile that may appeal to a specific subset of dividend investors — primarily those with high risk tolerance who prioritize current yield over consistency. The stock's approximately 7% yield and history of occasional special dividends can generate substantial cash-on-cash returns for investors who purchase at favorable entry points. However, the dividend is not supported by stable, recurring earnings: NL's income statement is heavily influenced by mark-to-market swings in its securities portfolio and the cyclical profitability of Kronos Worldwide's TiO2 business, which itself is sensitive to global construction and industrial demand. The lack of a long, uninterrupted dividend growth streak and a payout ratio that periodically exceeds 100% make NL unsuitable for conservative income investors or those relying on predictable quarterly income. Long-term value investors with patience may find the combination of a strong balance sheet, a growing CompX business, and a potential TiO2 cycle recovery compelling — but they should view the dividend as a variable component of total return rather than a fixed income stream. As always, individual circumstances, portfolio composition, and risk tolerance should guide any investment decision.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations