MSA Safety Keeps Quarterly Dividend at $0.51 a Share, Payable March 10 to Shareholders of Record as of Feb. 14

MSA Safety Declares Quarterly Dividend

PR Newswire

PITTSBURGH, Jan. 15, 2025

PITTSBURGH, Jan. 15, 2025 /PRNewswire/ — The Board of Directors of MSA Safety Incorporated today declared a first quarter dividend of $0.51 per share on common stock, payable March 10, 2025, to shareholders of record on February 14, 2025.

The Board also declared a dividend of $0.5625 per share on preferred stock, payable March 1, 2025, to shareholders of record on February 14, 2025.

About MSA Safety

MSA Safety Incorporated is the global leader in advanced safety products, technologies and solutions. Driven by its singular mission of safety, the Company has been at the forefront of safety innovation since 1914, protecting workers and facility infrastructure around the world across a broad range of diverse end markets while creating sustainable value for shareholders. With 2023 revenues of $1.8 billion, MSA Safety is headquartered in Cranberry Township, Pennsylvania and employs a team of over 5,000 associates across its more than 40 international locations. For more information, please visit www.MSASafety.com.

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SOURCE MSA Safety

/CONTACT: Media Relations Contact: Mark Deasy, (412) 559-8154; Investor Relations Contact: Larry De Maria, (917) 245-7463

2025 is proving to be a tough year. The S&P is down about 1% since the first trading day of the year, while the Dow fared slightly better. The recent jobs report pointed to a strong economy, but this good news translates to bad news for stock, as analysts now expect that there may not be any more rate cuts in 2025.

To me, that means I can take advantage of the near-term volatility and pick up cheap, quality stocks to add to my portfolio. So, let’s look at the elite Dividend Kings lists to find which companies are suffering the most from the bearish market - and appear to be making a try for a reversal.

As a quick refresher, a Dividend King is a company that has increased their dividend for at least the last 50 consecutive years. Unlike a Dividend Aristocrat, the Kings don’t need to be S&P 500 listed.

How I Came Up With The Following Stocks

To start this analysis, on Sunday, January 12, 2025, I went to Barchart’s Stock Screener and entered the following filters:

• 14-Day Relative Strength Index: Less than 30%. The relative strength index, or RSI, uses a 100-point system, which indicates if a stock is oversold (30 and below) or overbought (70 and above). I’m looking for Dividend Kings well into oversold territory.
• Annual Dividend Yield: Left blank.
• Current Analysts Rating: 4 (Moderate Buy) to 5 (Strong Buy). Despite bearish market movements, the stocks appearing in this analysis still have Wall Street’s approval.
• Percent from Low: Within 1% of 1-year low. This convenient filter lets me find stocks trading near their recent 52-week lows.
• Watchlists: Kings. This is my personal watchlist of the Dividend Kings.

This analysis yielded three companies, making it perfectly fitting for my usual stock list. I then waited to see if these companies are actually on the rebound (and potentially write about them)- and they are. So, I’ve arranged the results from highest to lowest analyst score, and we’ll start with the top one:

California Water Service Group Holding

California Water Service Group Holding, or Cal Water, is one of the largest water utility companies in the US. The company is heavily regulated and serves residential, commercial, industrial, and public sector customers in California, Hawaii, New Mexico, Texas, and Washington.

Cal Water is one of the most trusted and stable utility dividend stocks, with 58 years of increases. Today, it pays $1.12 annually, translating to a 2.65% yield. It’s also closed at 1.59% above its recent 52-week low, which—coupled with the fact that analysts are still optimistic about the stock with their moderate buy rating—might present an excellent buying opportunity for both dividend income and capital appreciation.

If that’s not enough, CWT stock is significantly oversold, registering a 22.43 14-day RSI on Monday, January 13, 2025. Though, it would appear a reversal might be in sight with the stock up over 8% in premarket trading.

MSA Safety

Nearly every operational industry has to contend with hazard control and safety issues, and companies like MSA Safety meet these needs. MSA Safety is a global company that designs, develops, and manufactures safety products like personal protective equipment (PPE), gas detection systems, respiratory protection, fall protection, and firefighter gear.

MSA stock had a rocky 2024, and recently registered a new 52-week low at $156.30. On January 10, 2025, the stock registered a 14-day RSI of ~27, and now appears to be rebounding. This can be an excellent opportunity to catch this Dividend King on a bargain and gain from its recovery.

MSA Safety has increased dividends for 54 straight years, with May 2025 expected to be the 55th. The company pays $2.04 annually, reflecting a 1.28% yield.

PPG Industries

PPG Industries, one of the world’s top paints, coatings, and specialty materials manufacturers, did not have a great 2024. Q3 2024 earnings missed estimates by 2 cents, and softer demands led to softer revenue by a 1% decrease year-on-year (YOY). The top-line miss was mainly due to its Industrial Coatings segment, down 6% YOY.

All this culminated in an oversold RSI level of ~26 on January 3, 2025, and a new 52-week low at $113.00 on January 13.

Despite that, analysts still see the light for PPG stock at the end of the tunnel. Analysts' scores are split evenly between 11 strong buy and 11 hold ratings, resulting in an average score of 4.0 and a moderate buy consensus recommendation. Meanwhile, PPG Industries continues to offer a healthy 2.4% yield based on a $2.72 annual dividend rate.

Final Thoughts

If you’re like me and bottom-pick as a trading strategy, these three Dividend Kings offer significant value through their steeply discounted prices and decent dividend yields. However, things can turn quickly, so always stay on top of market news. Due diligence may be tedious, but worth it!

On the date of publication, Rick Orford had a position in: CWT . All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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While it looked as though the markets started 2025 with momentum behind them, Tuesday's trading put the brakes on any of that talk, with the S&P 500 losing more than 1% on the day.

On Wednesdays, I write about stocks hitting 52-week highs or lows. According to Stocktwits, yesterday's highs were 56, compared to 54 lows. Translation: This is not a very bullish market.

Stocktwits reports the market’s 52-week highs and lows five days a week, providing a spreadsheet of the stocks in either camp. The site believes stocks hitting 52-week highs with few followers are ready to increase as more investors jump on the bandwagon. Conversely, those hitting 52-week lows with a significant following are likely to keep moving lower.

In yesterday’s trading, MSA Safety jumped out at me. It hit its fourth 52-week low of the past 12 months at $159.30. The manufacturer of protective safety gear has just 150 Stocktwits followers, suggesting that it’s unlikely to face an onslaught of negative sentiment in the coming weeks, pushing the stock into the $140s, a level it hasn’t traded at since October 2023.

MSA Safety could be a value play or a value trap. Here are some arguments for both scenarios.

MSA Is a Value Play

Whenever I consider whether a stock is a value play, I like to return to when the business was functioning at an extremely high level. In the case of MSA Safety, that happens to be today.

• Its revenues in the trailing 12 months (TTM) ended Sept. 30, 2024, are $1.80 billion, the highest they’ve ever been, according to S&P Global Market Intelligence.
• The same goes for the TTM EBIT profit of $415.0, a margin of 23.0%.
• Its EBIT margin over the past decade has ranged from a low of 12.0% in 2015 to a high of 23.0% ended Sept. 30. That’s nearly double.
• Its net debt/EBITDA ratio as of Q3 2024 was 0.9x, the lowest in the past decade.
• As of Sept. 30, its return on capital (TTM) was 15.5%, 50 basis points less than at the end of 2023 but the second highest in a decade. Once the fourth quarter is announced in February, it’s likely to be higher than 16%.

I could go on.

The point is that MSA Safety looks better than ever by virtually every financial metric or ratio. Its Altman Z-Score--which indicates the likelihood of bankruptcy proceedings in the next 24 months--is 6.13, an all-time high. For reference, anything over 1.81 is considered out of danger for a near-term bankruptcy.

In May 2024, the company introduced its 2028 financial targets at its annual Investor Day presentation. It expects to deliver $2.2 billion in organic revenue (excluding acquisitions) by the end of 2028 and an adjusted EPS of $10.50.

Based on 2023’s numbers, that’s a CAGR of 4.1% for sales and 8.4% for adjusted EPS. On average, it expects to convert at least 90% of its adjusted earnings to free cash flow. In 2023, it was 143%.

Most importantly, in January 2023, MSA Safety divested its subsidiary holding legacy liabilities for “all legacy cumulative trauma product liability reserves, related insurance assets, and associated deferred tax assets of the divested subsidiary from its balance sheet,” its Jan. 5, 2023, press release stated.

As a result, CFO Lee McChesney stated, “This transaction enhances predictability in the cash flows of our business and reduces our risk profile. Our balance sheet remains strong, and we are confident in our ability to delever within 12 to 18 months while maintaining our current dividend policy.”

It lost $129 million in 2023 as a result of the sale. Onward and upward.

Why Might It Be a Value Trap?

The organic sales growth rate is the only downside to investing in MSA stock. While 4% is reasonable, a recession would reduce that. However, given the 20% decline since mid-July, the stock isn't priced for perfection, so the downside would likely be reasonable even if that were to happen.

Its annual growth rate over the past decade ranged from a low of -3.8% in 2020 to a high of 17.0% in 2023. Any operational misfires would result in lower profits, stretch its valuation, and lead to a lower share price.

That’s the only negative aspect I can think of. However, its products are relatively dull, albeit vital, which explains why it only has 150 Stocktwits followers.

The Bottom Line

The following chart for its 2024 Investor Day presentation says it all.

The more I look at MSA Safety, the more I like it. I want to recommend an options play on the stock, but its volume and open interest are virtually non-existent.

At current share prices, you should be able to double your money by its 2028 targets.

The risk/reward proposition is in your favor.

On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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