NewMarket Raises Quarterly Dividend 8.3% to $3.25

NewMarket Corporation raised its quarterly dividend 8.3% to $3.25 per share from $3.00. The next ex-dividend date is December 15, 2026, and payment is due January 1, 2027. The increase lifts the annual dividend to $13.00 per share.

Why the dividend changed

NewMarket’s board did not give a specific reason for the increase. The declaration followed the company’s third-quarter report by one day, placing the decision against a backdrop of higher earnings, solid cash generation and continued spending on dividends, share repurchases and business investment.

Third-quarter net income rose to $124.1 million from $100.3 million a year earlier. Net income for the first nine months increased to $375.9 million from $337.5 million, helped by higher operating profit and a lower effective tax rate. Management said cash generated by the business funded capital expenditures, dividends and share repurchases while reducing net debt relative to earnings. The company described dividends as one part of a broader allocation program that also includes acquisitions and reinvestment for growth and efficiency. NewMarket’s third-quarter results provide the financial context for the board’s action, although management did not explicitly link those results to the increase.

The operating picture was mixed. Petroleum-additives shipments fell as NewMarket reduced low-margin business and encountered softer lubricant-additives demand. Surcharges and operating efficiencies offset higher raw-material, utility and logistics costs associated with Middle East supply disruptions, helping sustain segment profit. Specialty materials benefited from product mix and the inclusion of Calca Solutions, acquired on October 1, 2025. Management expects capacity projects for ammonium perchlorate and high-purity hydrazine to be completed by the end of 2026. The company’s results release identified those projects, cost pressures and market conditions as current operating priorities.

Dividend track record

The increase extends NewMarket’s dividend-growth streak to 7 consecutive years. Its last annual cut occurred in 2006, leaving a long interval between the present policy and the company’s most recent reduction.

The recent payment sequence shows a stepwise pattern. The quarterly rate was $2.50 for the December 16, 2024, ex-dividend date, then $2.75 for the March 17, June 16 and September 15 payments in 2025. It moved to $3.00 beginning with the December 15, 2025, ex-dividend date and remained there for the March 16, June 15 and September 15 payments in 2026. The new $3.25 rate continues that progression.

Full-year payments rose from $7.60 per share in 2020 to $11.25 in 2025. Annual growth accelerated to 13.0% in 2024 and 12.5% in 2025 after increases of 5.3% in 2021, 5.0% in 2022 and 5.4% in 2023. The five-year record is 7.7% annual growth. The latest 8.3% increase is below the two most recent full-year growth rates but above the pace recorded from 2021 through 2023.

Is the dividend covered?

The dividend consumes 25% of earnings. That payout ratio indicates that most earnings remain available for reinvestment, acquisitions, debt reduction and repurchases after the dividend obligation.

SmarterDividends rates the dividend A with a safety score of 92. The grade means very safe, within the score range of 80 to 100. It reflects the low earnings payout, established growth record and the company’s capacity to fund several capital-allocation priorities at the same time. The rating describes current coverage rather than guaranteeing future payments.

Yield and valuation

NewMarket’s forward yield is 1.66%, below the Basic Materials sector median of 1.95%. The lower relative yield means the shares provide less current dividend income than the sector midpoint, despite the higher quarterly payment.

At a share price of $783.66, the company has a market value of $7.2 billion. SmarterDividends estimates fair value at $934.08, corresponding to 19% upside and an undervalued verdict. The shares recorded a 2.6% gain over the past year. These valuation measures are separate from dividend safety: the yield reflects the relationship between the annual payment and the share price, while the safety grade focuses on the payment’s support.

What to watch

The next immediate checkpoint is December 15, 2026, the ex-dividend date for the $3.25 payment due January 1, 2027. Investors will then get a clearer view of full-year earnings, cash generation and capital allocation when NewMarket reports its next results.

Operationally, the principal items are petroleum-additives shipment trends, the effectiveness of surcharges, Middle East supply-chain costs and the company’s efforts to remove low-margin business. NewMarket said it continues to monitor trade relations, tariffs and the broader economic environment. Its third-quarter SEC exhibit also shows that working-capital investment and higher capital expenditures absorbed cash during the first nine months.

Completion of the specialty-materials capacity expansions is another year-end milestone. The performance and integration of Calca Solutions will help indicate whether the aerospace and defense chemicals operations can broaden earnings beyond NewMarket’s larger petroleum-additives business.