A beautiful and little known Swiss dividend growth machine

Lonza Group logo
Swiss company Lonza has a strong dividend history

Swiss pharma/biotech and specialty ingredients maker Lonza Group has proposed a CHF 4.00 per share dividend for 2023, up 14.3%. The dividend yield is 1.1% for Lonza, a company that continues its strong dividend track record.

Not many US investors will know Lonza, the $37 billion healthcare company from Switzerland. Lonza is a supplier to the pharmaceutical, healthcare and life science industries worldwide with offerings that  include custom development and manufacturing of drugs and drug delivery systems, as well as development of anti-microbial solutions for commercial applications.

We know Lonza for its strong dividend history with no dividend cut in at least the last two decades and double digit increases in each of the last two years. Last year Lonza announced a 16.7% dividend hike to a record high dividend of CHF 3.50 per share.

Lonza dividend history
Lonza will pay a record dividend in 2024 (source: x.com/dividendhike)

On January 26, 2024 Lonza announced its latest dividend hike from CHF 3.50 to CHF 4.00 per share. This 14.3% dividend hike translates into a 0.94% dividend hike at a stock price of CHF 434 for Lonza on January 29, 2024.

The ex-dividend date for the FY 2023 dividend is May 13, 2024. Shareholders will receive a net cash dividend of CHF 2.60 per share after Swiss dividend taxes. The dividend will be paid on May 15, 2024. Lonza now pays an estimated total dividend of €301 million.

Together with Nestlé, Roche, Novartis and chocolate maker Lindt & Spruengli, Lonza is one of the many Swiss companies with a very strong dividend track record.

Popular posts from this blog

Two dividend growth monsters that nobody knows about (yet)!