Updated 4/13/25
Avient Corporation (AVNT) is a specialty materials company focused on high-performance polymers and sustainable solutions, serving industries like healthcare, packaging, and automotive. With over $3.2 billion in annual revenue and a forward dividend yield of 3.47%, it combines steady cash flow with a shareholder-friendly capital approach. Led by CEO Dr. Ashish Khandpur, formerly of 3M, the leadership team has emphasized innovation, operational efficiency, and disciplined financial management. Despite recent stock volatility and a pullback from its 52-week high, the company has continued to grow earnings, generate strong free cash flow, and invest in long-term growth. The stock currently trades near $31, with a consensus analyst price target of $48.60.
Recent Events
So far this year, Avient is showing signs of turning a corner. The stock has been under some pressure over the past 12 months, down nearly 26% from its highs, but recent quarterly numbers are beginning to build a more encouraging narrative. Revenue ticked up 3.8% year-over-year, and earnings growth is hard to ignore—net income surged nearly 69%.
That kind of earnings expansion doesn’t happen by accident. Operating margins are healthy at over 8%, and the company continues to manage its expenses well. Free cash flow is a highlight—Avient generated nearly $196 million in levered free cash flow over the trailing twelve months. That’s a meaningful number, especially when you consider the dividend costs less than $100 million annually.
The stock’s trading action has picked up a bit, closing at $31.13 and moving slightly higher in after-hours trading. It still sits well below its 52-week high of $54.68, but for dividend-focused investors, that pullback may offer a more attractive yield and better long-term entry point.
Key Dividend Metrics
💰 Forward Dividend Yield: 3.47%
📈 5-Year Average Yield: 2.33%
📆 Dividend Date: April 4, 2025
📉 Payout Ratio: 56.66%
💸 Annual Dividend Rate: $1.08
📊 Free Cash Flow Coverage: Strong at $195.66M
🔍 Dividend Growth Trend: Steady and conservative
These are the types of numbers that matter when you’re building a portfolio designed to generate real, reliable income.
Dividend Overview
Avient’s dividend doesn’t scream for attention, but it speaks volumes with consistency. The forward yield of 3.47% is notably higher than its historical average, which sits around 2.33%. That uptick comes partly from a drop in the share price, but also from deliberate increases in the payout itself.
At $1.08 per share annually, the dividend is not only competitive—it’s well-supported by the company’s financials. A payout ratio of just under 57% shows the company isn’t stretching to make payments. That balance leaves room for continued investment in the business while still returning capital to shareholders.
The latest dividend was paid on April 4, so if you held the stock as of the March 18 ex-div date, you’ve already got your most recent check. At 27 cents per quarter, this isn’t a flashy high-yield play, but it’s dependable and, importantly, sustainable.
You can also take comfort in Avient’s balance sheet. With over $544 million in cash and a current ratio of 1.88, the company is in a strong liquidity position. While total debt stands at $2.15 billion, the free cash flow and cash reserves suggest the company is not in over its head.
Dividend Growth and Safety
Dividend safety isn’t just about coverage ratios—it’s about consistency and management’s philosophy toward capital return. Avient has shown over time that it takes a measured approach. The dividend has been growing steadily over the past five years, and while the increases haven’t been aggressive, they’ve been consistent and clearly intentional.
Earnings growth is a big part of this story. With diluted EPS at $1.84 and quarterly earnings growth close to 69% year-over-year, Avient isn’t scraping by to meet dividend commitments. The dividend is well within what the business can afford, even in a more conservative earnings scenario.
The company’s institutional ownership also tells a story. With over 100% of shares held by institutions (likely due to short lending and cross-ownership), it’s clear that the pros are seeing long-term value here. That doesn’t guarantee anything, of course, but it reinforces the idea that this is a company making thoughtful financial decisions, not chasing short-term stock price moves.
For investors who are building a portfolio focused on income, this kind of stable, growing dividend can serve as a backbone. It’s not volatile, it’s not trendy—but it works. And that’s what dividend investing is often about: finding stocks that quietly deliver year after year, without a lot of drama. Avient fits that mold.
Cash Flow Statement
Avient’s cash flow performance over the trailing twelve months reflects steady operational strength paired with a cautious capital strategy. Operating cash flow came in at $256.8 million, showing notable improvement over 2023 and indicating that core business activities are generating consistent, reliable cash. Free cash flow rose to $134.9 million, nearly doubling the prior year’s figure, and that improvement came despite an uptick in capital expenditures, which reached $121.9 million. These investments suggest continued commitments to operational improvements and long-term growth without jeopardizing financial flexibility.
On the financing side, the company took on $650 million in new debt but repaid $660.9 million, resulting in a net cash outflow in financing activities. This signals disciplined debt management rather than a reliance on leverage to support operations. Investing activities also saw a cash outflow of $120.6 million, consistent with ongoing capital projects but well within a manageable range. Importantly, the company’s ending cash position remains strong at $544.5 million, nearly unchanged from the previous year. Overall, the latest figures reinforce a story of solid internal cash generation, prudent reinvestment, and a stable liquidity profile that supports both ongoing operations and consistent dividend payouts.
Analyst Ratings
📈 Avient Corporation (AVNT) has seen some movement in analyst sentiment lately, reflecting shifting expectations around its business momentum and financial execution. One notable change came when Seaport Global upgraded the stock from “Hold” to “Strong Buy,” pointing to improvements in operating efficiency and a solid earnings rebound that’s beginning to take hold in 2025. That upgrade signals growing confidence in Avient’s ability to deliver consistent results, especially as it tightens its focus on higher-margin specialty materials.
📉 On the other side of the spectrum, Wells Fargo recently trimmed its price target from $55 to $39 while still maintaining an “Overweight” rating. The revised target reflects a more cautious view of macro pressures and sector headwinds, rather than company-specific missteps. It’s more a reflection of the environment than a knock on Avient itself, but it does add a layer of near-term skepticism for some.
💵 The average consensus price target across analysts now stands at $48.60, with expectations ranging from $39 on the low end to $58 on the high end. That’s still a notable premium from where the stock currently trades, sitting just above $31. This suggests that, while not universally bullish, the broader analyst community sees upside if execution continues and external conditions stabilize.
Earning Report Summary
Avient Corporation closed out 2024 on a strong note, showing that it’s staying the course even with some bumps in the broader economy. The company posted fourth-quarter revenue of $747 million, which came in about 5% higher than the same quarter a year ago. That kind of organic growth across the business suggests that Avient’s strategy of leaning into specialty materials and more value-added solutions is continuing to gain traction.
For the full year, sales climbed to $3.24 billion, up about 4% compared to 2023. It’s not flashy, but it’s steady—and for a business built on long-term contracts and industrial demand, that’s the kind of consistency shareholders can appreciate.
Solid Bottom-Line Improvement
Earnings were another bright spot. Fourth-quarter earnings per share landed at $0.52 on a GAAP basis, a solid jump from $0.30 the year before. On an adjusted basis, EPS was $0.49, slightly better than expected. For the full year, GAAP EPS came in at $1.84, more than doubling the prior year’s $0.83. Adjusted EPS for the year reached $2.17, showing that management’s focus on profitability and efficiency is paying off.
Segment Performance
Looking at the business segments, the Color, Additives, and Inks division led the way with $521.5 million in quarterly revenue. This area continues to be a reliable growth engine. The Specialty Engineered Materials group also contributed nicely, bringing in $294.6 million. Demand has been holding up well across key sectors like packaging, healthcare, and mobility, giving both segments room to grow.
Forward Guidance Looks Upbeat
Looking ahead, Avient has given some early guidance for 2025 that points to more growth. The company expects adjusted earnings per share to fall between $2.70 and $2.94 for the full year. That range would represent growth of roughly 6% to 16% over 2024, which is encouraging. It’s a sign that Avient’s leadership believes the operational improvements and strategic changes they’ve made are going to keep driving results—even as some sectors remain a bit unpredictable.
All in all, the latest earnings report paints the picture of a company that’s not just weathering the storm—it’s finding its rhythm. For long-term investors, especially those focused on dividend consistency and steady growth, there’s a lot to like in the direction Avient is heading.
Chart Analysis
Avient Corporation (AVNT) has had a turbulent ride over the past year, with the chart telling a clear story of a stock that peaked, drifted sideways, and eventually gave way to sustained selling pressure. The trend that began with strength and optimism has now moved into a distinctly different phase.
Moving Averages Breakdown
The 50-day moving average (red line) began the year in an uptrend, comfortably above the 200-day moving average (blue line), which signaled a healthy momentum phase for much of the first half of the year. That started to unravel around November, when the 50-day crossed below the 200-day, forming a death cross—often an early warning of a longer-term downtrend. Since then, both moving averages have been pointing lower, and the gap between them has widened, suggesting that the downward pressure has been consistent and supported by longer-term sentiment.
Price Action and Support Levels
The price stayed resilient through the summer and early fall, hovering in the mid-to-high 40s, but began to break down more decisively around December. It failed to reclaim the 50-day moving average in the early part of the year, and sellers began to take control. The sharp drop in April pushed shares briefly below $30, before seeing a small bounce—likely driven by short-term bargain hunting or technical support kicking in.
Volume and Participation
Looking at volume, there was a noticeable spike in activity during the most recent leg lower. That suggests the sell-off wasn’t just a trickle—it came with conviction. High volume on the downside tends to confirm bearish sentiment, although it can sometimes mark a capitulation phase. If this is indeed the case, the recent bump off the lows could have some legs, though it’s too early to call it a full reversal.
Relative Strength Index (RSI)
The RSI indicator at the bottom of the chart hovered mostly in the neutral zone for much of the year but dipped into oversold territory in early April. When RSI falls below 30, as it did recently, it can be a sign that the stock is deeply oversold and may be due for a short-term recovery. However, RSI has not made a strong push back above 50 yet, which would be a more convincing signal that momentum is shifting in a meaningful way.
Final Takeaways
This chart shows a name that went from strength to decline, with technicals still favoring the bears. The recent oversold reading and price bounce could hint at stabilization, but sustained improvement would need to come with stronger volume on up days and a move back above those long-term moving averages. For now, this looks like a stock trying to find a bottom after a tough stretch.
Management Team
Avient Corporation is led by Dr. Ashish K. Khandpur, who stepped into the role of President and CEO in December 2023. With nearly 30 years of experience at 3M, he brings a deep understanding of materials science, technology development, and global business strategy. His arrival signals a continued focus on innovation, operational excellence, and long-term growth.
Alongside Dr. Khandpur, the leadership team includes Jamie Beggs, who serves as Senior Vice President and Chief Financial Officer. Her financial expertise and background in corporate finance and capital markets have been instrumental in maintaining the company’s strong balance sheet. The team also includes Philip G. Clark, Ph.D., as Chief Technology Officer, who is guiding the company’s R&D initiatives in sustainable and high-performance materials. The broader executive bench blends experience across finance, technology, and operations, and is supported by a board of directors chaired by Richard H. Fearon, ensuring strategic oversight and strong governance.
Valuation and Stock Performance
Avient’s stock has had a bumpy year, with shares swinging between $27.86 and $54.68 over the past 12 months. As of now, it’s trading around $31.13, reflecting a meaningful pullback from its highs. That move lower has brought the valuation into more attractive territory. With a price-to-earnings ratio of just under 18 and a price-to-book ratio near 1.3, the stock appears to be reasonably valued in relation to its historical averages and peers in the specialty chemicals space.
The company’s market cap sits at roughly $3 billion, and its enterprise value is just over $4.5 billion, which takes into account its debt. Avient isn’t a flashy growth name, but these numbers tell the story of a stable, cash-generating business that’s still finding its way through shifting industry dynamics. Its earnings growth, recent margin improvement, and consistent dividend are all helping to anchor the valuation.
Risks and Considerations
As with any company, Avient comes with its share of risks. The debt-to-equity ratio is hovering around 0.89, indicating a moderate level of financial leverage. It’s not excessive, but it does mean the company has to stay sharp about how it allocates capital and manages interest rate exposure, especially in a rising-rate environment.
The chemicals and specialty materials industry can be cyclical, and input costs remain a factor to watch. If raw material prices spike or if supply chains get stretched again, that could put pressure on margins. Regulatory changes, particularly in global markets where Avient has a footprint, could also introduce new compliance costs or shift customer demand.
International exposure brings its own complexities. Currency fluctuations, shifting trade policies, and geopolitical developments all carry potential to impact operations and earnings. While diversification across industries and regions helps, it doesn’t fully insulate the company from macroeconomic or sector-specific headwinds.
Final Thoughts
Avient Corporation stands out as a company that has quietly evolved, investing in innovation and reshaping its portfolio toward higher-margin, sustainable solutions. The leadership team appears focused, the balance sheet is sound, and the business model leans into areas where long-term demand looks favorable.
The stock’s recent pullback has reset expectations, but the fundamentals remain intact. Solid free cash flow, a reasonable payout ratio, and continued investment in high-performance materials suggest the company is building with the long game in mind. It may not move in dramatic swings, but sometimes the most compelling stories are the ones that play out steadily, quarter by quarter.