Updated 3/6/25
Avient Corporation (NYSE: AVNT) is a company that specializes in advanced polymer solutions, helping industries from healthcare to automotive replace traditional materials with lighter, more efficient alternatives. Over the years, the company has evolved through acquisitions and restructuring to focus on high-margin specialty products.
For investors who prioritize dividends, Avient presents an intriguing opportunity. While it’s not a high-yield stock, it offers steady and growing payouts supported by a solid business model. However, as a materials company, its earnings can be influenced by economic cycles. Below, we’ll take a deeper look at its dividend profile, financial health, and key risks to consider.
📊 Key Dividend Metrics
📌 Dividend Yield: 2.57%
📌 Forward Annual Dividend Rate: $1.08
📌 5-Year Average Dividend Yield: 2.35%
📌 Payout Ratio: 56.66%
📌 Dividend Growth Streak: 13+ years
📌 Next Ex-Dividend Date: March 18, 2025
📌 Next Dividend Payment Date: April 4, 2025
Dividend Overview
Avient currently provides a 2.57% dividend yield, which is slightly above its five-year average. That suggests investors are getting a slightly better-than-usual payout compared to historical levels. While it’s not a stock that will attract income investors looking for ultra-high yields, it does offer consistent returns.
With a payout ratio of 56.66%, the dividend appears well-covered by earnings. This level of payout strikes a good balance between rewarding shareholders and ensuring the company has enough flexibility to reinvest in its operations.
The upcoming ex-dividend date is March 18, 2025, which means that investors who want to receive the next payout should own the stock before this date.
Dividend Growth and Safety
One of the strongest aspects of Avient’s dividend profile is its commitment to consistent growth. The company has increased its dividend for over 13 consecutive years, which shows a clear commitment to rewarding long-term shareholders.
Dividend safety goes beyond just payout ratios, though. Free cash flow is the real engine behind sustainable dividends. Avient generates $256.8 million in operating cash flow and $195.66 million in levered free cash flow, meaning it has the necessary cash to continue these payments.
However, a factor worth watching is its debt load. While Avient has maintained steady earnings growth—reporting 68.9% year-over-year earnings growth in the last quarter—the materials sector is cyclical. If a downturn occurs, free cash flow could tighten, potentially impacting future dividend increases.
Chart Analysis
The chart for Avient Corporation (AVNT) shows a stock that has been under some pressure in recent months after a strong run earlier in the year. The price action suggests a shift from an uptrend to a more cautious, potentially bottoming phase.
The 50-day moving average (orange line) has clearly rolled over and is trending downward, which typically signals a weakening trend. The price has been trading below this level for some time now, confirming that the stock is struggling to regain its previous momentum. More importantly, the 200-day moving average (blue line) has flattened out, suggesting the longer-term trend is at risk of turning bearish if further weakness continues.
Volume tells an interesting story. There were spikes in volume on sharp selloffs, particularly in December and again more recently. That often indicates institutional selling or broad market weakness impacting the stock. However, recent volume levels have been more balanced, suggesting selling pressure may be easing.
Looking at the most recent candles, the stock has attempted to bounce from its recent lows near $38. The last few sessions have seen some upside movement, with a close at $42.02. There’s some resistance near the 50-day moving average, which sits just above the current price level. If the stock can break back above this line with conviction, it could indicate that buyers are stepping in.
The RSI (Relative Strength Index) at the bottom of the chart suggests that the stock was oversold in recent weeks and is now beginning to recover. That’s typically a sign that momentum is trying to shift, but it will need follow-through buying to confirm any trend reversal.
Overall, the stock is in a critical zone where it could either stabilize and start a new uptrend or struggle to gain traction and head lower. The next few sessions will be important to watch, especially how the price interacts with the 50-day moving average.
Analyst Ratings
📈 Wells Fargo recently maintained its Buy rating for Avient but adjusted the price target downward from $59 to $55. While they remain optimistic about the company’s long-term prospects, the revision suggests a more cautious stance on near-term growth. The adjustment could be linked to evolving market conditions or company-specific challenges that might impact earnings.
📊 Deutsche Bank took a slightly more positive approach, reaffirming its Strong Buy rating while raising the price target from $45 to $50. This suggests growing confidence in Avient’s operational performance, possibly due to industry tailwinds or cost-saving initiatives.
⚖️ Seaport Global, on the other hand, downgraded Avient from Strong Buy to Hold on October 18, 2024. No specific price target was given, but the shift to a neutral stance implies concerns about the company’s ability to meet prior growth expectations. External factors such as raw material costs or economic headwinds could be influencing their outlook.
📌 Consensus among analysts suggests an average 12-month price target of $54.40, with estimates ranging from $50 to $58. This represents an expected 27% upside from the current price of $42.77.
🔄 These recent ratings reflect a mixed but balanced view on Avient. Some analysts see potential for upside, citing operational improvements, while others remain cautious about industry uncertainties and economic conditions.
Earning Report Summary
Avient Corporation just wrapped up another solid quarter, showing that the company is navigating the current economic landscape with resilience and steady growth. The latest earnings report highlights gains in revenue, improved profitability, and a positive outlook for the year ahead.
In the fourth quarter, sales came in at $746.5 million, which is about 3.8% higher than the same period last year. That’s a good sign that demand remains strong across Avient’s key markets. Earnings per share (EPS) saw an even bigger jump, with GAAP EPS landing at $0.52, up from $0.30 last year. On an adjusted basis, EPS was $0.49, right in line with what analysts had expected. Operating income also climbed higher, hitting $85.6 million, nearly doubling from last year’s $43.1 million in the same quarter.
For the full year, Avient reported total sales of $3.24 billion, a steady 3% increase over 2023. GAAP EPS for the year came in at $1.84, a significant jump from $0.83 the previous year. When adjusting for one-time items, EPS was $2.66, reflecting 13% growth from 2023—showing that the company’s bottom line continues to strengthen.
Looking at business segments, the Color, Additives, and Inks division posted 3% growth, thanks to strong demand in consumer goods and packaging. The Specialty Engineered Materials segment saw even better results, with a 6% increase, largely driven by innovation in healthcare materials and sustainable solutions.
From a regional perspective, the United States and Canada led the way with a 6% sales increase, while Latin America was the real standout, posting an impressive 14% jump. Meanwhile, Asia recorded a 7% growth rate, and Europe, the Middle East, and Africa (EMEA) saw a more modest 1% increase—still positive, but showing that the market there remains more stable than surging.
Operationally, Avient hit a huge safety milestone, marking its safest year in company history. On top of that, the company improved margins across its core business units, showing that efficiency efforts are paying off.
Looking ahead, Avient is forecasting adjusted EPS between $2.70 and $2.94 for 2025. Even when accounting for potential currency headwinds, that would still translate to an 11% increase at the midpoint of guidance. With steady demand, improved margins, and strategic positioning in growing markets, Avient seems set for another year of solid performance.
Financial Health and Stability
Looking at Avient’s financial position, the company has a cash balance of $544.5 million, providing liquidity that can help cushion any short-term business slowdowns.
However, its debt level is something investors should keep an eye on. The company carries $2.15 billion in total debt, with a debt-to-equity ratio of 92.23%. While debt isn’t necessarily a bad thing—especially for companies investing in growth—high leverage can limit financial flexibility.
The current ratio of 1.88 suggests that Avient has enough short-term assets to cover its short-term liabilities. This is a reassuring sign, as it means the company isn’t in immediate financial distress.
For dividend investors, the key question is whether Avient can keep up its payments while managing its debt load. So far, its cash flow suggests it can, but any prolonged downturn in industrial demand could create challenges.
Valuation and Stock Performance
Avient’s valuation looks reasonable at current levels. The stock trades at a forward price-to-earnings (P/E) ratio of 14.77, which is within a fair range compared to its industry peers. The PEG ratio of 1.48 suggests that the stock is priced in line with its expected growth.
Over the past year, the stock has been volatile, ranging between $37.63 and $54.68. Right now, it’s trading around $42 per share, putting it closer to the lower end of its 52-week range.
It’s also below its 200-day moving average of $45.64, which indicates that the stock has seen some downward pressure. This could present an opportunity for long-term investors, though it’s always important to assess whether the broader market conditions justify the current price.
Risks and Considerations
While Avient has some attractive qualities for dividend investors, there are risks to be aware of:
🔴 Cyclical Industry Exposure – Avient operates in the materials sector, which means demand for its products tends to rise and fall with economic cycles. If industrial activity slows, revenue and earnings could decline.
🔴 High Debt Levels – The company has a significant amount of debt, which could limit financial flexibility. If interest rates rise further or cash flows weaken, paying down debt may take priority over dividend growth.
🔴 Stock Volatility – With a beta of 1.45, Avient’s stock is more volatile than the overall market. While this can create opportunities for investors looking to buy at lower prices, it also means there could be sharp price swings.
🔴 Competitive Market – The specialty polymers sector is competitive, and any slowdown in innovation or customer demand could impact future growth.
Final Thoughts
For investors looking for a moderate-yield dividend stock with consistent growth, Avient presents a compelling case. Its 13-year dividend growth streak and manageable payout ratio suggest stability, while its strong free cash flow supports continued payments.
That said, the high debt load and cyclical exposure add some risk to the equation. Investors who prefer low-volatility, defensive dividend stocks may want to consider alternatives. However, those comfortable with a bit more risk in exchange for growth potential might find Avient to be a solid long-term hold.
Keeping an eye on cash flow trends, debt reduction efforts, and broader economic conditions will be key in evaluating Avient’s dividend outlook moving forward.
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