This article first appeared on GuruFocus .
A Deep Dive into Greif Inc's Upcoming Dividend and Long-Term Sustainability
Greif Inc ( NYSE:GEF ) recently announced a total dividend of $0.62 per share with the ex-dividend date set for 2026-09-17, including $0.62 per share cash dividend payable on 2026-10-01. For income-focused investors, the ex-dividend date is a critical marker: shareholders must own the stock before this date to qualify for the payment, while those buying on or after it will not receive the distribution. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Greif Inc's dividend performance and assess its sustainability.
What Does Greif Inc Do?
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Greif Inc is a producer of industrial packaging products and services with manufacturing facilities located in many countries. It offers a comprehensive line of rigid industrial packaging products, such as steel, fiber, and plastic drums, rigid intermediate bulk containers, closure systems for industrial packaging products, transit protection products, water bottles and remanufactured and reconditioned industrial containers, and services, such as container life cycle management, blending, filling, logistics, warehousing, and other packaging services. The company operates in three reportable business segments including Global Industrial Packaging, Paper Packaging and Services, and Land Management. It operates in the USA, Europe, Middle East, Africa and Asia and Other Americas.
A Glimpse at Greif Inc's Dividend History
Greif Inc has maintained a consistent dividend payment record since 1989. Dividends are currently distributed on a quarterly basis, a cadence that income investors generally favor for its steady cash flow. This long-standing commitment to returning capital to shareholders underscores the company's disciplined approach to capital allocation and its resilience across multiple economic cycles.
Greif Inc has increased its dividend each year since 1995. The stock is thus listed as a dividend aristocrat, an honor that is given to companies that have increased their dividend each year for at least the past 31 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Greif Inc's Dividend Yield and Growth
As of today, Greif Inc currently has a 12-month trailing dividend yield of 2.75% and a 12-month forward dividend yield of 2.83%. This suggests an expectation of increased dividend payments over the next 12 months. For value investors, the gap between the trailing and forward yields is a useful signal: it implies that the company is projected to pay out more per share over the coming year than it did over the past twelve months, reinforcing management's confidence in future cash generation.
Over the past three years, Greif Inc's annual dividend growth rate was 4.70%. Extended to a five-year horizon, this rate decreased to 3.10% per year. And over the past decade, Greif Inc's annual dividends per share growth rate stands at 1.50%. This decelerating pattern suggests that while the dividend continues to rise, the pace of increases has moderated over time, a nuance worth monitoring for long-term income planning.
Based on Greif Inc's dividend yield and five-year growth rate, the 5-year yield on cost of Greif Inc stock as of today is approximately 3.20%. Yield on cost measures the annual dividend return an investor would earn relative to their original purchase price, assuming reinvestment and growth assumptions hold, making it a helpful gauge of the compounding value of a long-held position.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2026-06-30, Greif Inc's dividend payout ratio is 0.55, meaning roughly 55% of earnings are returned to shareholders, leaving a reasonable cushion for reinvestment and adverse conditions.
Greif Inc's profitability rank offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Greif Inc's profitability 8 out of 10 as of 2026-06-30, suggesting good profitability prospects. The company has reported positive net income for each year over the past decade, further solidifying its high profitability and providing a dependable earnings base from which dividends are funded.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Greif Inc's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. A strong growth rank, combined with a solid profitability rank, indicates that Greif Inc is not merely maintaining its dividend but potentially has the underlying business momentum to continue raising it in the years ahead.
Revenue is the lifeblood of any company, and Greif Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Greif Inc's revenue has increased by approximately -1.80% per year on average, a rate that underperforms than approximately 61.24% of global competitors. This modest top-line contraction warrants attention, as sustained revenue declines could eventually pressure the company's ability to grow its dividend at historical rates.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Greif Inc's earnings increased by approximately 24.00% per year on average, a rate that underperforms than approximately 25.73% of global competitors. The divergence between declining revenue and rising earnings suggests margin expansion or cost efficiencies are doing the heavy lifting, a dynamic investors should weigh carefully.
Lastly, the company's 5-year EBITDA growth rate of 16.60%, which underperforms than approximately 22.17% of global competitors, rounds out the growth picture. EBITDA, or earnings before interest, taxes, depreciation, and amortization, is often used as a proxy for operating cash flow, and steady growth here supports the company's capacity to fund both capital expenditures and shareholder returns.
Next Steps
In summary, Greif Inc's upcoming $0.62 per share dividend, payable on 2026-10-01 to shareholders of record ahead of the 2026-09-17 ex-dividend date, reflects a long and distinguished track record of returning capital. With a payout ratio of 0.55, a profitability rank of 8 out of 10, and a growth rank of 8 out of 10, the dividend appears reasonably well supported by earnings. However, the decelerating dividend growth rate, from 4.70% over three years to 1.50% over a decade, alongside slightly negative revenue growth, suggests that future increases may be more modest. Value investors should weigh the company's dividend aristocrat status against these growth headwinds when evaluating the stock.
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