SHW · 10-Q · 2026Q1 · Full report
Capital Return Program
SHERWIN WILLIAMS CO · 2026-04-28 · Importance 64 · Surprise 42
The Company returned $772.7 million to shareholders in Q1 2026 via dividends and share repurchases and repurchased 1.6 million shares in the quarter. During Q1 2026 treasury stock activity totaled $623.5 million, and the Company had remaining board authorization to repurchase 28.0 million shares as of March 31, 2026. In February 2026 the Board increased the quarterly cash dividend from $0.79 to $0.80 per share, implying a $3.20 annual dividend if maintained for the year (approximately a 31% payout of 2025 diluted net income). The Company indicates it will continue disciplined capital deployment including dividends and opportunistic share repurchases while maintaining liquidity.
Key facts
- If the $0.80 quarterly dividend is approved in each remaining quarter of 2026, the annual dividend for 2026 would be $3.20 per share, representing a 31% payout of 2025 diluted net income per share.
- The Company returned cash of $772.7 million to shareholders in the form of dividends and share repurchases during the quarter ended March 31, 2026.
- In February 2026 the Board of Directors increased the quarterly cash dividend from $0.79 per share to $0.80 per share.
- Net financing cash source decreased $319.6 million in the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 primarily due to an increase in treasury stock purchases, increased payments of long-term debt and decreased proceeds from real estate financing transactions, partially offset by increased short-term borrowings and proceeds from stock options exercised.
- The Company had remaining authorization from its Board of Directors at March 31, 2026 to purchase 28.0 million shares of its common stock.
- Shareholders’ equity decreased $167.2 million during the first three months of 2026 primarily due to $623.5 million of treasury stock activity and the payment of $197.1 million in cash dividends, partially offset by Net income of $534.7 million, an increase in Other capital of $71.0 million and an increase in Other comprehensive income, net of tax of $47.6 million.
- The Company purchased 1.6 million shares of its common stock for treasury purposes through open market purchases during the first three months of 2026.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | realized | -2.9% | The Company returned cash of $772.7 million to shareholders in the form of dividends and share repurchases during the quarter ended March… |
| cash | negative | realized | -1.2% | Net financing cash source decreased $319.6 million in the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025… |
| cash | negative | contingent | — | If the $0.80 quarterly dividend is approved in each remaining quarter of 2026, the annual dividend for 2026 would be $3.20 per share,… |
| cash | negative | committed | — | In February 2026 the Board of Directors increased the quarterly cash dividend from $0.79 per share to $0.80 per share. |
| liability | negative | committed | — | In February 2026 the Board of Directors increased the quarterly cash dividend from $0.79 per share to $0.80 per share. |