Why Argan Stock Just Popped 6%

Core Viewpoint - Argan is positioned as a unique investment opportunity, being both a dividend stock and a growth-at-a-reasonable-price (GARP) stock, following strong sales and earnings growth in its fiscal second quarter [1]. Dividend Information - Argan plans to increase its quarterly dividend payout by 25% from $0.30 to $0.375 per share, resulting in an annual dividend of $1.50 [2]. - The current dividend yield will rise to 1.6%, surpassing the average S&P 500 stock yield of approximately 1.5% [3]. Financial Performance - The company reported a positive free cash flow of $169 million over the last 12 months, leading to a low price-to-free-cash-flow ratio of 7 [3]. - Argan anticipates a 10% earnings growth rate, indicating strong financial health and potential for value appreciation [3].