Quaker Chemical Raises Dividend 4.3% to $0.53

Quaker Chemical Corporation, which does business as Quaker Houghton, raised its quarterly dividend 4.3% to $0.53 per share from $0.508. The shares traded ex-dividend on October 16, 2026, and payment is due October 30, 2026.

Why the dividend changed

Management tied the increase to confidence in the durability of Quaker Houghton’s business and its cash-generating capacity. Chief Executive Officer Joseph Berquist said the company remains focused on balancing investment in growth, financial flexibility and cash returns to shareholders. The declaration did not involve a stock split, merger, spin-off or special dividend. It was an increase in the regular quarterly distribution. Quaker Houghton’s dividend announcement

The decision followed improved second-quarter operating results. Net sales reached $532.6 million, an increase of 10% from a year earlier, as sales volumes grew 7% on new-business wins across all regions. Net income was $26.8 million, while adjusted EBITDA increased 13% to $85.2 million. Management said underlying markets were flat to slightly positive, with pricing actions helping offset raw-material inflation. Quaker Houghton’s second-quarter results

Cash generation presented a more mixed picture. Operating cash flow for the six months ended June 30, 2026, was $33.2 million, down from $38.5 million a year earlier because of working-capital outflows. Improved operating performance and lower restructuring outflows provided a partial offset. The company nevertheless said existing cash, anticipated operating cash flow and available liquidity were sufficient to fund dividends, repurchases, capital spending and growth opportunities for at least the following 12 months. Quaker Chemical’s second-quarter Form 10-Q

The dividend is one part of a broader capital-return program. Quaker Houghton repurchased $24.2 million of stock in the second quarter and has a new $250 million repurchase authorization. Those uses of cash compete with debt service, acquisitions and organic investment, making subsequent cash conversion an important measure of the dividend’s support.

Dividend track record

The increase extends Quaker Chemical’s dividend-growth streak to 18 consecutive years. Its recent payment pattern shows measured annual resets rather than frequent changes. The first three quarterly payments of 2025 were $0.485 per share. The rate then rose to $0.508 for the October 17, 2025, ex-dividend date and remained there for the following three payments before advancing to $0.53 for the October 16, 2026, ex-dividend date.

Full-year distributions increased from $1.55 per share in 2020 to $1.60 in 2021, $1.68 in 2022, $1.76 in 2023, $1.85 in 2024 and $1.96 in 2025. The annual increases were 3.2%, 5.0%, 4.8%, 5.1% and 6.1%, respectively. That progression shows consistent mid-single-digit growth, with no reversal during the period. The five-year record equates to 4.7% annual growth.

The new quarterly rate corresponds to an annual dividend of $2.12 per share. An investor holding 100 shares would receive $212.00 annually if the rate remained unchanged and all four quarterly payments were made.

Is the dividend covered?

The dividend consumes 36% of earnings. That leaves a majority of reported earnings available for debt reduction, reinvestment, acquisitions and repurchases, providing a meaningful buffer against ordinary fluctuations in profit.

SmarterDividends rates the dividend A with a safety score of 96. The grade means very safe within the score range of 80-100. It reflects strong earnings coverage and the company’s established payment record, although no safety grade eliminates risks from weaker industrial demand, raw-material inflation or heavier working-capital needs.

The latest operating results support the coverage assessment, but the decline in first-half operating cash flow warrants attention. The company is simultaneously funding the dividend, repurchases and business investment while carrying debt, so earnings coverage and cash conversion need to be evaluated together.

Yield and valuation

At a share price of $156.96, the annual dividend produces a forward yield of 1.35%. That is below the Basic Materials sector median forward yield of 1.91%, meaning the shares provide less current dividend income than the median sector company.

SmarterDividends estimates fair value at $142.80 and classifies the valuation as fair. Relative to the $156.96 share price, the estimate represents 9% downside. The stock has recorded a 13.9% gain over the past year.

What to watch

The immediate milestone is the October 30, 2026, dividend payment to holders who qualified through the October 16, 2026, ex-dividend date.

Quaker Houghton is scheduled to release third-quarter results after the market closes on October 29, 2026, followed by an earnings call on October 30, 2026. Investors will receive updated information on demand, pricing, raw-material costs, working capital and cash generation. Management previously expected stable demand entering the third quarter and flat to slightly positive end markets for the remainder of the year. Quaker Houghton’s earnings-call notice

The company also plans an investor day on December 10, 2026. Management has said the presentation will address strategy, growth drivers, business-transformation initiatives and long-term financial objectives, providing additional context for how dividends and repurchases fit within capital allocation. Quaker Houghton’s investor-day announcement