Advanced Drainage Systems hikes dividend by 22.2%

Advanced Drainage Systems (WMS) will raise its quarterly dividend by 22.2 percent to 11 cents per share in 2021. This follows a dividend hike of 12.5 percent to $0.09 per share in 2019 when the company also paid a $1.00 per share special dividend.

The next dividend of 11 cents be paid on June 15, 2021 to shareholders of record at the close of business on June 1, 2021. The new regular annual dividend of 44 cents yields 0.4% at a stock price of $107.

Scott Barbour, President and Chief Executive Officer of Advanced Drainage Systems commented, “The 22% increase in our quarterly cash dividend and the $250 million increase in our share repurchase authorization is predicated on the strength of our balance sheet, formidable cash generation, and ongoing commitment to returning capital to shareholders. Our strong financial performance and operational excellence initiatives provide us with the confidence and financial flexibility to return excess cash to our shareholders while simultaneously continuing to strategically invest in our business, including nearly doubling our expected capital expenditures in fiscal year 2022.”

Advanced Drainage Systems is a manufacturer of thermoplastic corrugated pipe, providing water management products and drainage solutions for use in the construction and infrastructure marketplace. Its products are used across a broad range of end markets and applications, including non-residential, residential, agriculture and infrastructure applications.