How NewMarket's (NEU) Dividend Increase Amid Weaker Earnings Has Changed Its Investment Story

NewMarket Corporation recently reported third-quarter 2025 results, with sales declining to US$690.31 million and net income at US$100.27 million, while simultaneously announcing a 9% increase in its quarterly dividend to US$3.00 per share. This decision to boost dividends despite lower earnings highlights management's ongoing confidence in the company’s financial strength and commitment to shareholder returns. We'll explore how NewMarket’s higher dividend payout, set against softer earnings, shapes the company’s current investment narrative. AI is about to change healthcare. These 32 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.What Is NewMarket's Investment Narrative?If you’re considering NewMarket as a long-term holding, you’ll want to believe in the durability of its business model in the specialty chemical sector, its disciplined capital management, and the sustainability of its high returns on equity. The recent decision to raise the dividend, even as sales and net income declined for the third quarter, suggests that management is emphasizing shareholder rewards and expressing confidence in the company’s balance sheet. Meanwhile, the abrupt resignation of the company’s Principal Accounting Officer appears not to have stemmed from any disputes or operational problems, and the CFO stepping in suggests a smooth interim transition. At this stage, the executive change is unlikely to be a material catalyst or risk in the short term. The more immediate questions still revolve around earnings trends, margin resilience, and the ability to offset any ongoing revenue pressure in a competitive industry. But, there’s an important caveat for anyone watching company leadership transitions. NewMarket's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.Exploring Other PerspectivesNEU Earnings & Revenue Growth as at Nov 2025 Investor fair value estimates in the Simply Wall St Community currently range from US$739.86 to a very large US$1,671.56, based on two different forecasts. While some see substantial upside, recent shifts in earnings and leadership highlight why opinions remain far apart and why it’s worth exploring a range of views.Explore 2 other fair value estimates on NewMarket - why the stock might be worth over 2x more than the current price!Build Your Own NewMarket NarrativeDisagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.A great starting point for your NewMarket research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.Our free NewMarket research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate NewMarket's overall financial health at a glance.Seeking Other Investments?The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.We've found 16 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.This technology could replace computers: discover 28 stocks that are working to make quantum computing a reality. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.