Newell Brands, Inc. (NWL) has declined nearly 60% over the past year, notes Ned Piplovic; here, the editor of DividendInvestor reviews the company's troubles and offers guidance on the long-term prospects.

The company manufactures and distributes consumer and commercial products under well-known consumer brands, such as Calphalon, Crock-Pot, Graco, Mr. Coffee, NUK, Oster, Rubbermaid, Sunbeam, Yankee Candle, Dymo, Elmer’s, Expo, Mr. Sketch, Paper Mate, Parker, Sharpie, Waterman, Coleman and X-Acto, notes Ned Piplovic, editor of DividendInvestors.

One reason for the share price fall is a pending litigation in which Newell Brands and some of the company’s executives are charged with violating federal securities laws because the executives failed to disclose material information between February 2017 and January 2018.

Another reason for the share price fall is the potential impact of new tariffs, which the company estimates could have an annual impact of more than $100 million.

The company’s current $0.23 quarterly dividend distribution is equivalent to a $0.92 annualized payout and a 4.5% dividend yield, which is more than double the company’s 2.2% five-year average.

Unfortunately, only a portion of the yield’s growth over the past five years came from the annual dividend increases. A significant contributor to the yield rise was the sharp share price dividend decline over the last year.

The company’s next round of dividend distributions will occur on September 14, 2018. On that date, the company will distribute its next round of dividends to all shareholders of record before the August 30, 2018 ex-dividend date.

The company’s current primary focus is executing its Transformation Plan with the attention on restructuring the company into a more efficient operation with a focus on its core businesses.

While the company is in transition, the share price is highly likely to continue its downtrend. Some investors will certainly seek to exit their position and look for higher returns elsewhere.

Alternatively, if Newell Brands’ Transformation Plan is successful, the lawsuit outcome is favorable and if the anticipated tariffs do not materialize, the share price could reverse its downtrend.

This scenario, combined with the rising dividends, offers patient and risk-averse investors an opportunity for significant total returns over an extended time horizon. Investors will have to make their own evaluation and decide which strategy aligns best with their own investment goal and portfolio strategy.

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