Key Takeaways
📈 Masco offers a 1.95% forward dividend yield with consistent annual increases, supported by a low 32% payout ratio and a steady history of shareholder returns.
💰 The company generated $1.01 billion in operating cash flow and $842 million in free cash flow over the trailing twelve months, providing strong coverage for dividends and buybacks.
🔍 Analysts have a consensus price target of $73.63, reflecting modest upside; recent ratings reflect both cautious optimism and adjustments due to short-term earnings softness.
Updated 5/30/25
Masco Corporation (MAS) is a key player in the home improvement and building products space, with a strong lineup of brands like Delta Faucet, Behr Paint, and Hansgrohe. The company generates consistent cash flow, maintains a disciplined payout ratio, and continues to reward shareholders through dividends and buybacks. Recent financials show some softness in sales and earnings, but margins have remained solid and cash flow generation continues to support its capital return strategy.
A leadership transition is underway, with Jonathon Nudi set to take over as CEO in July 2025. Analysts have a consensus price target of \$73.63, reflecting moderate upside from current levels. Masco’s focus on operational efficiency, product demand tied to long-term housing trends, and a resilient dividend make it a company many income-focused investors keep on their radar.
Recent Events
Masco’s first-quarter results this year didn’t set the world on fire. Sales dropped 6.5% from the year before, and net income slid nearly 13.5%. Not ideal, but definitely not alarming. Even with those hits, Masco posted a solid 10.29% profit margin, and its operating margin came in at a healthy 15.88%. That shows a company still managing its costs well, even while facing a soft patch in revenue.
The stock price has reflected some of that pressure. Sitting at $63.45, shares have dipped quite a bit from their 52-week high of $86.70 and are closer to the low end of their range. For traders, that might be a red flag. But for dividend investors, that kind of dip often opens a more attractive yield—and Masco’s payout remains steady.
Key Dividend Metrics
🔵 Dividend Yield: 1.95% (Forward)
💵 Annual Dividend: $1.24 per share
📈 5-Year Average Yield: 1.58%
🔁 Dividend Growth: Solid year-over-year increases
🧱 Payout Ratio: 32.24%
💰 Cash Flow Coverage: Backed by $734M in levered free cash flow
🗓️ Next Dividend: June 9, 2025
📉 Ex-Dividend Date: May 23, 2025
These numbers aren’t flashy, but they’re the kind you can build a reliable income stream on.
Dividend Overview
Masco’s forward dividend yield is sitting at 1.95%, just a bit higher than the trailing yield of 1.89%. That might not seem like much on the surface, but it actually reflects a slightly better entry point than usual. Over the past five years, the average yield has hovered around 1.58%, so today’s figure looks relatively generous by comparison.
That $1.24 dividend is well supported by earnings. With $3.66 in earnings per share over the past year, Masco’s payout ratio is sitting comfortably at 32%. That gives it plenty of cushion. Even if earnings wobble a bit, the company isn’t stretching to keep up the dividend.
And the dividend checks keep rolling in like clockwork. The next payout lands on June 9, for those who held shares before the May 23 ex-dividend date. Masco’s been a model of consistency when it comes to these payments—something any long-term holder can appreciate.
What makes this even more solid is the company’s cash flow. Operating cash flow topped $1 billion over the past year, and levered free cash flow hit $734 million. That easily covers dividend obligations and leaves room for share repurchases, reinvestment, or more debt reduction.
Dividend Growth and Safety
When you’re looking for a stock to support long-term income goals, you want two things: a reliable check now and the confidence that check will keep coming—maybe even growing. Masco delivers on both.
Its balance sheet shows a manageable debt load at $3.31 billion, paired with $377 million in cash. The current ratio of 1.75 suggests the company can handle its short-term needs without issue. That’s not always the case in this market, and it’s part of why Masco’s dividend feels so steady.
Dividends haven’t just held steady—they’ve grown. While the company isn’t throwing out double-digit increases, it’s nudging the payout higher on a regular basis. That’s the kind of slow-burn growth that fits right into an income portfolio. When you pair that with share repurchases, total capital return starts to look very shareholder-friendly.
One number that jumps off the page is return on equity, which sits north of 1,100%. That’s a product of an asset-light balance sheet and aggressive buybacks shrinking the equity base. It’s not a traditional metric of profitability in this case, but it does highlight how management has been working to return value in every way possible.
The bigger picture? Masco sells things people always need—products tied to home improvement and repair. That gives it a relatively stable demand curve, even when broader markets get choppy. And despite a dip in Q1 performance, the fundamentals that support its dividend haven’t changed. Earnings still cover payouts. Cash flow remains strong. And the company isn’t blinking.
At today’s valuation, the forward P/E sits just under 18. That’s not a bargain-bin stock, but it’s also not priced as a high-growth name. What you’re paying for is consistency—and for dividend investors, that can be worth its weight in gold.
Cash Flow Statement
Masco’s trailing twelve-month cash flow shows a solid ability to generate cash from operations, with $1.01 billion in operating cash flow. That figure, while slightly down from 2023’s $1.075 billion and significantly off 2022’s peak of $1.41 billion, still reflects consistent cash generation capacity. Free cash flow also remains healthy at $842 million, providing enough flexibility to cover dividends, reinvest in the business, and fund buybacks without tapping into debt or reserves.
On the financing side, the company continues to return substantial cash to shareholders and manage its debt actively. Financing cash flow was negative $955 million over the last year, largely due to debt repayments and capital returns. New debt issuance was minimal at $82 million, while repayments were just $2 million, signaling a steady approach to balance sheet management. The end cash position stood at $374 million, which, though down from previous years, suggests adequate liquidity in light of strong free cash flow and low near-term financial pressure.
Analyst Ratings
📊 Masco Corporation (MAS) has recently seen a wave of analyst rating changes, reflecting a cautious yet constructive sentiment around the stock. 🟡 Deutsche Bank bumped its price target from $59 to $69 while holding onto a neutral stance, signaling they see modest upside but are still watching key metrics closely. 🟠 Wells Fargo followed a similar path, nudging its target up from $65 to $73 with an Equal Weight rating—essentially saying the stock is fairly valued for now.
🔻 On the flip side, a few firms took a slightly more conservative view. 🔵 Oppenheimer trimmed its price target from $89 to $73, though it kept an Outperform rating, suggesting they still like the stock long-term but are adjusting to recent earnings trends. 🔵 JPMorgan also revised down from $81.50 to $65 and stayed Neutral, likely pointing to near-term uncertainty or concerns around market demand and cost pressures.
📈 Across the board, the consensus 12-month price target now stands at $73.63. That’s about 16% above where the stock is currently trading. Targets range from a low of $58 to a high of $89, showing there’s still some debate among analysts about how much upside Masco really offers right now.
🧭 What’s clear is that most analysts are taking a wait-and-see approach. They acknowledge the solid foundation and strong cash flow but are weighing that against short-term headwinds like slowing housing activity and margin pressure. While the tone isn’t overly bullish, there’s definitely confidence in the company’s ability to navigate and adapt.
Earning Report Summary
Slower Sales but Holding the Line
Masco’s first quarter of 2025 came in a bit softer than the same time last year. The company posted $1.8 billion in net sales, which is down around 6%. Most of that dip came from the Decorative Architectural Products side of the business, which took a bigger hit with a 16% drop in sales. The Plumbing segment, where brands like Delta and Hansgrohe live, was down just 1%, so not nearly as dramatic.
Despite the overall decline in top-line numbers, the company managed to slightly improve its gross margin, bumping it up to 35.8% from 35.6% last year. Operating profit landed at $286 million, which is about a 10% drop, and margins pulled back a little to 15.9%. Earnings per share slid to $0.87, compared to $0.97 in Q1 of last year, but all things considered, Masco kept things relatively stable in a tougher environment.
CEO Keith Allman was pretty upfront about the challenges the company is dealing with. The introduction of new tariffs, especially in categories tied to their core products, is adding pressure. There’s also the broader uncertainty in the housing and renovation markets, which plays directly into Masco’s customer base. In response, leadership is working on offsetting those costs through price changes, shifting sourcing strategies, and trimming expenses where it makes sense.
They’ve decided not to issue a full-year outlook, and that feels like a reflection of the unknowns still out there—how consumers will respond to pricing changes, what input costs will do, and how the broader economic picture will play out. Even so, Allman emphasized that the company is staying focused on what it can control and leaning into the strength of its brands to keep pushing value to shareholders.
For now, Masco’s leadership seems to be taking a cautious but steady approach—adjusting as needed and positioning the company to respond quickly as conditions change. The tone was realistic, but not pessimistic. There’s no sugarcoating that it’s a tricky environment, but it’s clear Masco plans to keep navigating it with discipline.
Management Team
Masco Corporation is led by a seasoned executive team with deep experience in the building products and home improvement industry. Keith Allman has served as President and CEO since 2014, guiding the company through multiple economic cycles with a consistent focus on cost management, shareholder value, and operational strength. His approach has emphasized stability over flash, and that’s helped Masco maintain a dependable reputation in its sector.
Later this year, Jonathon Nudi will step into the CEO role, officially taking over on July 7, 2025. Nudi brings a strong background from General Mills, where he held top positions including Group President of North America Retail. His experience managing complex product portfolios in consumer goods could bring a fresh layer of strategic thinking to Masco’s next phase. His leadership is expected to bring continuity but with new energy focused on scaling the company’s core business segments.
Supporting the transition and future growth is a steady executive lineup. Richard Westenberg serves as CFO and Treasurer, overseeing Masco’s financial strategy and structure. Jai Shah leads Plumbing Products, managing key names like Delta and Hansgrohe, while Imran Ahmad runs the Architectural Products division, home to Behr and related brands. Together, they form a cohesive leadership team with a clear focus on operational performance and long-term value creation.
Valuation and Stock Performance
As of late May 2025, Masco’s stock trades near $63.45, which puts it well below its 52-week high of $86.70. That drawdown reflects not just company-specific factors but broader softness in housing and construction-related names. Still, it’s comfortably above the 52-week low of $56.55, suggesting some degree of investor support is returning.
The stock’s forward price-to-earnings ratio is hovering around 17.8. That’s a fair multiple for a company with stable cash flows, solid brand power, and no outlandish growth assumptions built into the share price. Masco’s enterprise value to EBITDA ratio is roughly 13.3, a level that supports the idea that the stock is fairly priced but not cheap—perhaps more of a value pick for steady-income seekers than high-growth chasers.
On the street, analysts are moderately optimistic, with a consensus price target near $73.63. That implies about 16% potential upside from current levels, which reflects both room for recovery and tempered expectations. Even with some revenue contraction in 2024, Masco managed to protect its margins and generate free cash flow strong enough to support dividends, buybacks, and reinvestment. That’s not always the case in cyclical sectors like this.
Risks and Considerations
Masco, like most industrial and building products companies, is tied closely to the housing cycle. When new construction slows or renovation demand drops, it feels it. That sensitivity makes the stock more vulnerable during periods of economic tightening, especially when interest rates are elevated or consumer confidence takes a hit.
Material costs and supply chain snags are always potential headaches. From resins to metals, any spike in input prices can crimp margins if the company isn’t able to pass those costs through quickly enough. While Masco has shown good discipline in managing cost inflation in the past, it’s an ongoing challenge that doesn’t go away.
There’s also some strategic uncertainty as the new CEO transition takes shape. While Jonathon Nudi brings strong credentials, any leadership change comes with risk. Investors will be paying close attention to how he aligns with Masco’s long-term strategy and whether his direction stays the course or tries to shift gears.
Regulatory compliance is another area worth watching. Environmental regulations, safety standards, and international trade dynamics can all affect Masco’s operations and product sourcing. These aren’t the kind of risks that show up every quarter, but when they do, they tend to hit margins or create delays in execution.
Final Thoughts
Masco isn’t trying to be the fastest-growing company in the market. It’s aiming to be one of the most reliable in its category. With a focus on home improvement essentials and a well-established portfolio of brands, it’s positioned itself as a core holding for investors looking for consistency in cash flows and shareholder returns.
Leadership transition brings both opportunity and some unknowns, but the company’s foundation appears solid. It’s generating meaningful free cash flow, managing its balance sheet conservatively, and keeping capital allocation pointed toward dividends and buybacks without overreaching.
There will be headwinds, as there always are in a cyclical industry, but Masco has weathered plenty of them before. The next chapter under new leadership will be one to watch—not for dramatic shifts, but for how the company leans into its strengths and adapts to an evolving market. The fundamentals are in place. Now, it’s about execution.