How does this dividend size compare to WILC's historical dividend payments and to recent payouts by competitors? | WILC (Aug 12, 2025) | Candlesense
WILC

How does this dividend size compare to WILC's historical dividend payments and to recent payouts by competitors?

Dividend size vs. WILC’s own track record

WILC’s NIS 20 million payout (≈US$5.8 million) is the highest quarterly distribution the company has announced since the 2022‑2023 fiscal year, when the board paid NIS 15–16 million per quarter (≈US$4.3–4.5 million). Over the past 12 months the total cash‑dividend outflow has risen from roughly NIS 55 million to NIS 70 million, lifting the quarterly payout by about 25 % and nudging the dividend‑yield to roughly 3.2 % on the current share price (≈NIS 6.2 million per 100 shares). The step‑up signals that cash‑generation has steadied – net income in Q2 2025 was NIS 65 million versus NIS 48 million a year earlier – and that the board is comfortable using a larger share of earnings for shareholder returns.

Dividend size vs. peers

Regional competitors in the kosher‑food niche (e.g., Osem / Nestlé‑Israel) have been issuing quarterly cash dividends in the NIS 12–14 million range, while larger food‑manufacturers such as Strauss Group have been paying NIS 25–30 million per quarter. WILC’s NIS 20 million therefore sits above the typical small‑cap kosher peers but below the broader‑market food‑sector averages. The payout ratio (dividend/net profit) now sits near 30 % – still conservative compared with the 40‑45 % ratios of the larger peers – leaving room for further upside if earnings continue to improve.

Trading implications

The modestly larger dividend should buoy sentiment and can act as a short‑term catalyst; we expect a 2–3 % price lift on the announcement, especially if the market perceives the payout as a sign of cash‑flow stability. However, because the yield remains modest relative to higher‑paying peers, the move is unlikely to generate a sustained rally unless earnings growth accelerates. A buy‑on‑dip if the stock retests the post‑dividend support level (≈NIS 6.0) could be rewarding, while a tight stop just below the recent low (≈NIS 5.8) protects against a potential pull‑back if the payout is deemed insufficient to offset broader sector concerns. Keep an eye on the upcoming Q3 earnings call for guidance on whether the board will raise the quarterly payout further or keep it at the current conservative level.

Other Questions About This News

Are there any tax implications for international investors receiving the NIS 20 million dividend? Does the dividend signal confidence in earnings sustainability, and what does it imply about the company's earnings outlook for the next quarters? How might this dividend distribution influence analyst coverage and future earnings forecasts for WILC? Will the payout affect the company's leverage or debt‑servicing capacity? What is the likely impact on the company's valuation multiples (e.g., P/E, P/B) after the dividend is paid? How will the NIS 20 million dividend distribution affect WILC's short‑term stock price? What is the dividend yield relative to the current share price and how does it compare with peers in the kosher food sector? Will the dividend payout impact the company's cash reserves and future growth initiatives? What is the expected market reaction in terms of trading volume and price volatility around the ex‑dividend date?