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This Company Just Announced a 40% Increase to Its Dividend

Dividend growth stocks often make modest single-digit increases to their payouts. Double-digit rate hikes are less common and increases of 40% are downright rare. But that's what Westlake Corporation (NYSE:WLK) announced this month, that its dividend would be rising by a massive 40%.

The company says that for the second quarter, its dividend would be $0.50 per share, up from $0.357. The company's CEO, Albert Chao, says "the significant increase in our dividend reflects the strong cash generative business model as we have continued our growth at Westlake." The company manufactures materials and housing and infrastructure products.

Westlake has been a reliable dividend stock to own as it has consistently made regular payouts since going public in 2004. With the bump up to the payout, the company is now paying $2 per share in dividends annually, putting its yield at 1.5%, which is in line with the S&P 500 average.

Year to date, the stock has made for a good buy with its gains up around 27%. And at 13 times earnings, it's a fairly modest buy right now. Investors may be discounting it a bit due to its exposure to housing and the potential for a slowdown, but with reliable profits and a growing dividend, it could make for a decent investment to hang on to. Since 2019, the company's sales have nearly doubled from $8.1 billion to just under $15.8 billion in 2022.

While another huge dividend increase may not be coming for a while, Westlake can make for a good investment all around, offering investors good value, growth, and dividend income.