H.B. Fuller Has Raised Its Dividend for 33 Years but Growth Is Slowing

H.B. Fuller manufactures adhesives and sealants globally and pays $0.915 per share annually, yielding 1.52%. The company paid $47.6 million in dividends in 2024 against $163.2 million in free cash flow, a 29% FCF payout ratio and a five-year average FCF payout of 24%. The 2024 earnings payout ratio was 37%, and the trailing twelve‑month earnings payout ratio is 43% ($0.915/$2.11 EPS). Total debt is $2.08 billion versus $1.96 billion of equity (1.06x debt-to-equity), with net debt about 3.6x EBITDA. Interest annualizes to $134 million against $316 million of 2024 EBIT, giving 2.4x coverage. The dividend has been increased for 33 consecutive years, with a recent 5.6% increase and five-year CAGR of 7.7%.

"The company paid $47.6 million in dividends during 2024 against $163.2 million in free cash flow, producing a free cash flow payout ratio of 29%. The five-year average FCF payout ratio sits at 24%, meaning the company typically returns less than one-quarter of its cash generation to shareholders. The 2024 earnings payout ratio was 37% ($47.6 million dividends against $130.4 million net income)."

"Total debt stands at $2.08 billion against shareholders' equity of $1.96 billion, producing a debt-to-equity ratio of 1.06x. Net debt of approximately $1.96 billion translates to 3.6x EBITDA, which sits at the upper end of what I consider manageable for an industrial manufacturer. With quarterly interest expense of $33.6 million ($134 million annualized) and EBIT of $316 million in 2024, the interest coverage ratio calculates to 2.4x."

"H.B. Fuller ( NYSE:FUL) manufactures adhesives and sealants globally. The company pays $0.915 per share annually, yielding 1.52%. The company has raised its dividend for 33 consecutive years, qualifying it as a Dividend Aristocrat. The quarterly payment increased from $0.2225 in Q1 2025 to $0.235 in subsequent quarters, reflecting the 5.6% annual increase. Over the past five years, the dividend has grown at a 7.7% compound annual rate."

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