Quad Increases Quarterly Dividend Amid Enhanced Financial Performance and Growth Strategy

Quad/Graphics Announces Increase in Quarterly Dividend

In a significant move designed to reward its shareholders, Quad/Graphics, Inc. (NYSE: QUAD), a prominent player in the global marketing experience sector, has announced an increase in the quarterly dividend for its common stock. The Board of Directors approved the new dividend of $0.075 per share, an increase from the previous $0.05 per share. This adjustment raises the annualized dividend from $0.20 to $0.30 per share.

The new dividend rate will take effect starting March 14, 2025, and will be distributed to shareholders recorded as of February 28, 2025. This increase reflects Quad's commitment to delivering value to its investors and showcases the company's robust financial health and strategic direction.

Strategic Growth and Financial Priorities

Joel Quadracci, the Chairman, President, and CEO of Quad, expressed that the company remains focused on its financial priorities and strategic growth initiatives. He stated, "We remain focused on our strategic growth and financial priorities, including consistent, strong cash generation." The success of these ongoing initiatives has enabled the company to enhance its dividend while simultaneously reducing its debt levels.

Quad has been able to maintain significant capital flexibility, allowing for continued investments in its marketing experience solutions. This also opens up opportunities for future share repurchases, reflecting the company’s confidence in the sustainability of its operations and financial health.

About Quad

the Global Marketing Experience Leader

Quad prides itself on being a leader in the marketing experience landscape, focusing on aiding brands in forging direct connections with consumers through various channels, including in-store and online engagements. The company leverages innovative technology and data-driven insights to derive solutions that simplify the marketing process. Their mission is to navigate the complexities of marketing, ensuring a seamless experience for both brands and consumers.

With approximately 13,000 employees spread across 14 countries, Quad serves around 2,700 clients, including well-known enterprises across numerous sectors. These encompass retail, consumer packaged goods, financial services, and health, demonstrating the company's versatile capabilities. Notably, Quad ranks as one of the largest marketing agencies in the U.S., as noted by Ad Age, bolstered by its full-service Rise media agency and Betty creative agency.

Financial Impact and Considerations

While the announcement of the dividend increase is certainly optimistic, Quad provides a candid perspective on potential future challenges. The company's forward-looking statements include concerns regarding the evolving landscape of marketing analytics and operations complexity, particularly as it transforms into a fully-fledged marketing experience company.

In light of pressures relating to pricing, operational costs, and the potential declines in demand for traditional printing services, Quad's management is keenly aware of the dynamics affecting the company’s operational efficiency and cost structures. The fluctuating market conditions, influenced by economic factors like inflation and interest rates, serve as reminders of the uncertainties faced by businesses globally.

Nevertheless, the recent financial strategies and developments demonstrate Quad's resilience and adaptability in facing these hurdles head-on. The company’s proactive planning and commitment to operational excellence underline its readiness to navigate the competitive marketing landscape.

Conclusion

The strategic increase in dividends not only underscores Quad's financial stability but also positions it favorably within the marketing ecosystem. By enhancing returns to shareholders and allowing for reinvestment opportunities, Quad reaffirms its commitment to sustainable growth and shareholder value creation. Investors can anticipate forthcoming advancements, confident in the company’s solid foundational strategies and innovative approaches.

For more information on Quad, its services, and ongoing innovations, visit quad.com.