Updated 3/26
Simpson Manufacturing (SSD) is for those who like stability and long-term performance with a side of growing dividends, it’s a name worth knowing. This company operates in a fairly grounded business—literally. They produce structural building products, like connectors, anchors, and fastening systems that are used in construction and home improvement. Think of them as the behind-the-scenes player making sure buildings stand tall and safe.
The company has been around since 1956, and while the tools and techniques in construction have evolved, Simpson’s focus hasn’t wavered. It’s grown into a global brand with strong roots in the U.S., Europe, and Asia-Pacific. What makes SSD interesting from a dividend investor’s point of view is how well it blends industrial strength with financial discipline.
Let’s take a closer look at what’s happening under the hood for Simpson Manufacturing and why it might deserve a spot on the radar for those seeking consistent, long-term dividend income.
Recent Events
The past year hasn’t been the smoothest ride for SSD. The stock is down about 22.5% from its 52-week high of $206.48, currently trading just above $159. While that might make some investors nervous, it’s actually opened a potential value window for income-focused portfolios.
Revenue has continued to grow—albeit slowly—with a 3.1% year-over-year increase in the most recent quarter. That growth is modest, but it comes with a level of predictability that is rare in more cyclical sectors. Earnings also nudged up 1.2%, signaling that SSD is managing its costs well despite economic pressures and potential slowdowns in construction activity.
Simpson’s most recent dividend announcement sets the next payment at $1.12 annually, with the next dividend date coming up on April 24, 2025. The company has a history of consistent quarterly payouts, and this is no exception.
Key Dividend Metrics
📈 Forward Dividend Yield: 0.70%
💰 Annual Dividend: $1.12 per share
🔁 Payout Ratio: 14.61%
⏳ 5-Year Average Yield: 0.85%
📅 Next Dividend Date: April 24, 2025
🚨 Ex-Dividend Date: April 3, 2025
Dividend Overview
At a 0.70% forward yield, Simpson won’t be topping any charts for income. But what it lacks in headline yield, it makes up for in sustainability and reliability. That small payout is supported by a very low payout ratio—just 14.61%. So not only is the dividend well covered, it has room to grow.
The yield is currently a bit lower than the five-year average of 0.85%, mostly due to stock price movements. That’s important to keep in mind because it shows SSD is still maintaining discipline in how it returns cash to shareholders, even when the stock is under pressure.
Simpson’s dividend story is more about steady, incremental progress than eye-popping yields. It suits investors who value safety and are willing to let time do the heavy lifting.
Dividend Growth and Safety
Simpson has earned a reputation for treating shareholders with respect. That includes a long-standing commitment to growing its dividend thoughtfully. The company has increased its payout consistently over the years—without overextending. This makes it a solid example of what dividend growth investors often look for: reliability over showiness.
The safety of the dividend is reinforced by its low payout ratio. Earnings could take a substantial hit, and Simpson would still have room to maintain its distribution. That’s exactly the kind of buffer that gives confidence to long-term holders, especially when economic conditions are unpredictable.
Free cash flow is also supporting this story. With $338 million in operating cash flow and $141 million in levered free cash flow over the past year, Simpson is in a strong position to keep the checks coming, no matter what happens in the short term.
Chart Analysis
Current Market Behavior
Simpson Manufacturing’s chart is showing a clear downward bias that’s been in place for several months. The stock topped out around the $200 range back in early summer and has since been carving out a series of lower highs and lower lows. That steady fade is a telltale sign of distribution, where sellers have gradually taken control.
Price is now hugging the lower end of its recent range, currently closing at $160.01 on March 25, 2025. The 50-day moving average (orange line) is trending sharply downward and is positioned well below the 200-day moving average (blue line), which itself has begun sloping downward. This type of alignment, with both moving averages declining and the shorter-term average below the longer one, often points to continued bearish pressure in the near term.
Recent Candlestick Activity
Looking at the most recent five candles, the picture is one of attempted stabilization. The most recent candle showed a tight range between the low of $158.40 and high of $160.93, with a small body. This type of action—small candles after a decline—suggests indecision. Buyers are starting to nibble, but there’s no clear conviction yet.
Wick activity across these candles has been modest, with small lower shadows, indicating some buying interest on intraday dips. However, upper wicks have also started to form, showing that any short-term strength is still being met with selling. That tug-of-war hasn’t been resolved just yet.
Volume and Momentum
Volume on the latest move has been relatively muted, coming in at just over 75,000 shares. That’s not enough to confirm a major shift in sentiment. For any rebound to stick, it’ll need to be backed by heavier trading activity, signaling real participation from institutions or larger buyers.
The Relative Strength Index (RSI) has been hovering in the lower third of the scale, sitting just above the oversold zone but not yet signaling a reversal. That suggests bearish momentum is still intact, though it’s beginning to lose some steam.
Moving Averages and Trend
The 50-day moving average rolled over back in January and has acted as resistance on multiple occasions since. Even when prices try to bounce, they’ve struggled to break above that line. Meanwhile, the 200-day average is starting to catch up on the downside. The bearish crossover that occurred a few months ago hasn’t been challenged, reinforcing the broader downtrend.
This setup reflects a markdown phase—price has clearly broken away from prior consolidation zones and is now searching for a new level of support. So far, buyers haven’t made a meaningful stand.
Support and Resistance Levels
There’s some short-term support developing around the $158 area, where price bounced a few times recently. But resistance is stacked higher, particularly around $170 where the price last attempted to recover and failed. For any serious shift in trend, that level will need to be reclaimed, and the moving averages flattened or turned higher.
Until then, the chart leans bearish, though near-term conditions suggest the possibility of a pause or short-lived bounce.
Analyst Ratings
📉 Simpson Manufacturing Co., Inc. (SSD) has seen a few analyst adjustments recently, reflecting shifting expectations around its performance and broader sector dynamics. As of March 26, 2025, shares are trading at $159.02, down notably from their 52-week high.
📊 In February 2025, analysts at Baird revised their outlook on SSD. While they kept an “outperform” rating, they trimmed the price target slightly from $196 to $192. The reasoning was tied to cautious optimism—SSD reported moderate revenue growth of 3.1% and a slight bump in earnings of just over 1%, suggesting the company is holding its ground but not necessarily accelerating.
⚖️ In March 2025, DA Davidson took a more reserved stance, adjusting their rating to “neutral” and lowering the price target from $195 to $185. That shift stemmed from concern about SSD’s recent downtrend in price action and broader weakness in construction-related names. The stock has recently tested the $152 level, raising questions about near-term momentum.
🎯 Across the board, the current average consensus price target sits at approximately $188.50. That leaves room for a potential upside of just under 19% from current levels, but it’s clear that sentiment is somewhat mixed. Analysts seem to agree that while Simpson’s fundamentals remain strong, sector-specific headwinds and market volatility are keeping expectations in check.
Earning Report Summary
Steady Revenue in a Slower Environment
Simpson Manufacturing wrapped up 2024 with a sense of quiet consistency. The company brought in $517.4 million in revenue during the fourth quarter, which marked a 3.1% increase from the same period the year before. For the full year, sales landed at $2.2 billion—up just under 1% from 2023. While that growth isn’t eye-popping, it’s notable given the broader slowdown in construction and housing markets.
Margins Feeling a Bit of Pressure
Gross profit for the quarter came in at $227.7 million, showing a slight year-over-year improvement. But zooming out to the full year, margins dipped a bit—falling from 47.1% to 46%. That shift was mostly due to higher costs in manufacturing, warehousing, and freight. Nothing out of the ordinary in this inflationary environment, but still something to keep an eye on.
Operating expenses also crept up, especially on the full-year side. Total spending rose to $590.5 million, up almost 5% from the year before. A good chunk of that went into payroll and tech upgrades, which shows Simpson is still investing even as it tightens margins.
Earnings Hold Their Ground
On the bottom line, the company pulled in $55.5 million in net income for the fourth quarter. That’s just a touch above the prior year, but considering the market conditions, holding steady is a win. Diluted earnings per share came in at $1.31, edging out last year’s $1.28.
Over the full year, though, net income dipped nearly 9% to $322.2 million, with earnings per share sliding from $8.26 to $7.60. It’s not ideal, but it’s hardly a collapse—more of a slight step back after a very strong run in prior years.
Regional Performance Was Mixed
Looking closer at geography, North America led the way with fourth-quarter sales growing 4.4%. Europe, on the other hand, saw a slight dip of about 1.5%. That drop isn’t dramatic, but it does reflect some of the softer demand across the continent.
Simpson continues to return cash to shareholders with a dividend of $0.28 per share, staying consistent with its approach of balanced capital allocation. The company also offered guidance for 2025, calling for an operating income margin somewhere between 18.5% and 20.5%. That forecast suggests management is staying cautious, likely bracing for continued uncertainty in the housing and construction landscape.
Overall, Simpson Manufacturing managed to keep things steady, even as headwinds picked up. There’s no fireworks here—but also no real red flags.
Financial Health and Stability
The balance sheet is where Simpson really shines. The company holds $239 million in cash and only $480 million in debt. That’s a comfortable position—especially when you consider the current ratio is an impressive 3.21. They aren’t just covering their bills; they’ve got plenty of flexibility if markets get rocky.
Return on equity stands at 18.49%, and return on assets at 10%, which tells us management is making smart use of both its capital and operations. There’s no excessive leverage here, and no signs of financial stress.
In a sector where cyclicality can quickly expose weak financial structures, Simpson has shown it can weather storms without stretching its balance sheet.
Valuation and Stock Performance
At a glance, SSD’s valuation doesn’t scream “cheap”—but there are signals worth noticing. The trailing P/E is just under 21, and price-to-book is around 3.68. These are reasonable numbers, especially when you factor in the consistent profitability and strong return metrics.
Enterprise value to EBITDA comes in at 13.28, which is toward the lower end of the company’s historical range. That suggests investors may not be fully pricing in SSD’s operational consistency and dividend dependability.
Stock performance, however, has been underwhelming lately. Down over 20% from its highs, the share price has lagged broader market gains. But viewed through the lens of a long-term investor, that drop might look more like a reset than a red flag. Simpson isn’t a high-flyer by nature, so the current dip could simply reflect cyclical pressures in the construction sector rather than any real decline in the company’s core strengths.
Risks and Considerations
While Simpson is a model of financial prudence, it’s not immune to external pressures. The company’s performance is still tied to construction and housing activity. If there’s a deeper pullback in residential or commercial building, that could hit both top and bottom lines.
Another factor to keep in mind is input costs. As a manufacturer, Simpson is exposed to fluctuations in steel prices and global supply chain challenges. While they’ve shown an ability to manage through these issues, they remain part of the risk picture.
Finally, the low dividend yield—while very safe—may not be enough to attract income-seeking investors who need more immediate cash flow. SSD is better suited for those who want growing, reliable dividends over time rather than high current yield.
Final Thoughts
Simpson Manufacturing isn’t likely to make headlines, but that’s part of its appeal. It’s a quiet performer—focused on fundamentals, strong financials, and a consistent dividend strategy. For investors who appreciate sturdy balance sheets and shareholder discipline, SSD checks a lot of the right boxes.
The stock may not be flying high right now, but the business is solid, the dividend is safe, and the management team has proven it knows how to navigate tough environments. That’s not always exciting, but in a world of noise and volatility, sometimes boring is exactly what you want.
For those building a dividend-focused portfolio with an eye on long-term total return, Simpson Manufacturing might not be the biggest yield on the page, but it’s got the kind of quiet strength that stands the test of time.