Greif Raises Quarterly Dividend 10.7% to $0.62

Greif, Inc. raised its quarterly Class A dividend 10.7% to $0.62 per share from $0.56. The first payment at the new rate went ex-dividend on June 17, 2026, and the company maintained the $0.62 rate for the September 17, 2026, ex-dividend date.

Why the dividend changed

Greif tied the increase to free-cash-flow generation, balance-sheet improvement and confidence in its long-term earnings power. Chief Financial Officer Larry Hilsheimer said the decision formed part of a capital-allocation framework that balances organic investment, selective share repurchases, dividends and leverage discipline. Greif’s dividend announcement presented the increase as a use of stronger financial capacity rather than a response to improving end-market demand.

A major asset sale helped create that capacity. Greif completed the divestiture of its containerboard business after agreeing to sell the operation to Packaging Corporation of America for $1.8 billion in cash. Proceeds from that transaction and a timberlands sale supported substantial debt repayment. In its fiscal second-quarter report, Greif said leverage had fallen to 1.1x and adjusted free cash flow was $179.3 million, even as management described industrial demand as weak and reduced the low end of its earnings outlook. The second-quarter results show that the dividend increase followed a portfolio restructuring and balance-sheet reset, not a cyclical rebound.

Subsequent results reinforced that distinction. Fiscal third-quarter adjusted EBITDA increased to $183.4 million, while adjusted free cash flow declined to $57.7 million. Greif set fiscal-year guidance of $615 million to $635 million for adjusted EBITDA and $305 million to $325 million for adjusted free cash flow. Management continued to characterize industrial demand as subdued while emphasizing cost control and capital allocation. Greif’s third-quarter report also said the company had resumed plans for share repurchases and completed the Envaplast bolt-on acquisition.

Dividend track record

The increase extends Greif’s dividend-growth streak to 5 consecutive years. The annual total rose from $1.76 in 2020 to $1.80 in 2021, $1.92 in 2022, $2.04 in 2023, $2.12 in 2024 and $2.20 in 2025. Those yearly increases were 2.3%, 6.7%, 6.3%, 3.9% and 3.8%, respectively. The sequence shows steady increases through different operating conditions rather than one unusually large annual adjustment.

The quarterly record shows an acceleration. Greif paid $0.54 on the March 17, 2025, and June 17, 2025, ex-dividend dates, followed by $0.56 on September 16, 2025, December 18, 2025, and March 16, 2026. It then moved to $0.62 for June 17, 2026, and retained that rate for September 17, 2026. The 5-year dividend-growth rate is 4.6% annual growth, while the reported annual dividend per share is $2.36.

Is the dividend covered?

The dividend consumes 89% of earnings. That leaves a relatively narrow earnings cushion, meaning changes in reported profit can move the payout ratio materially even when the cash payment is unchanged.

SmarterDividends rates the dividend A, with a safety score of 90. That falls within the “very safe (score 80-100)” category. The grade indicates that the broader safety profile, including the established payment record and the company’s strengthened financial position, is more favorable than the earnings payout ratio alone suggests. The increase provides annual income of $236.00 for every 100 shares at the reported annual dividend.

Yield and valuation

Greif’s forward yield is 2.80%, compared with a Consumer Cyclical sector median forward yield of 2.66%. The stock therefore offers a modestly higher income rate than the sector benchmark, although the difference is limited.

At a share price of $83.17, SmarterDividends’ fair-value estimate is $74.25. The valuation verdict is fair, with 10% downside to the estimate. The stock’s 1-year price return is a 45.4% gain, providing context for why the yield remains close to the sector median despite the larger quarterly payment.

What to watch

Cash generation remains the central coverage measure because management explicitly used it to justify the increase. Greif’s fiscal-year adjusted free-cash-flow guidance of $305 million to $325 million, its leverage position and the pace of share repurchases will show how dividends compete with acquisitions and internal investment for capital.

Portfolio changes also remain relevant. Greif plans to exit the coated recycled paperboard market and close its Sweetwater paperboard mill by the end of the calendar year. The company said the operation’s cost position and limited integration prevented it from achieving a sustainable competitive position. The Sweetwater announcement frames the closure as part of a continuing effort to concentrate capital in stronger businesses. The next fiscal-year results will provide an update on guidance, restructuring costs, cash generation and the durability of the balance-sheet improvement that supported the dividend increase.