15 Low Profile Dividend Champions to Buy

12. Stepan Company (NYSE:SCL)

Number of Hedge Fund Holders: 17

Stepan Company (NYSE:SCL) is an Illinois-based company that deals in specialty and intermediate chemicals. The company delivered strong earnings results for fiscal year 2024. Adjusted EBITDA increased by 4% year-over-year, even with the impact of several one-time charges and pre-operating expenses related to its new Pasadena facility. The Surfactants and Specialty Products segments recorded solid double-digit gains in Adjusted EBITDA, though these were partly offset by weaker demand in the Polymers segment.

Overall, global sales volume rose by 1%, driven by a 2.5% increase in the Surfactant business, with notable growth momentum seen across several of the company’s key strategic markets.

Stepan Company (NYSE:SCL) also maintains a solid financial position, supported by strong cash generation. In the fourth quarter, Stepan reported $68.3 million in operating cash flow and $32.1 million in free cash flow. This robust cash flow has allowed the company to raise its dividend for 57 consecutive years, placing it among the best Dividend Champions to invest in. Its quarterly dividend comes in at $0.385 per share for a dividend yield of 3.25%, as of April 17.