Valhi Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Valhi (NYSE: VHI  ) rose as much as 11.5% in early trading after the company reported the results of its annual meeting and raised its quarterly dividend payout by 25%.

So what: The company, which makes a titanium dioxide pigment for coatings and plastics, approved say-on-pay measures required by the Dodd-Frank financial reform legislation and raised its dividend payout from $0.10 to $0.125 quarterly.

Now what: As an investor, I’m happy to see Valhi raising dividends. If nothing else, it’s an indicator that management takes its responsibility to shareholders seriously -- and we’ve seen far too many examples of CEOs who couldn’t care less about outside investors. In fact, we’re taking a look at some of them this week. Click here to take a closer look at Talbots (NYSE: TLB  ) , here for an inside view of Adobe Systems (Nasdaq: ADBE  ) , and here to check under the hood of Morgan Stanley (NYSE: MS  )

Interested in more info on Valhi? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn’t own shares in any of the companies mentioned in this article at the time of publication. Check out his portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader.

Motley Fool newsletter services have recommended buying shares of and creating a diagonal call position in Adobe Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (2) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 27, 2011, at 6:54 PM, russglo wrote:

    I remember you advised holders of VHI to sell short. This article is sourgrapes. You are eating crow. You never understood the Harold Simmons holdings

    It almost looked like you had a vendetta against this firm..

    Sell any of his firms and suffer FOOL.

  • Report this Comment On May 28, 2011, at 7:43 AM, TMFMileHigh wrote:

    @russglo,

    >>I remember you advised holders of VHI to sell short.

    Are you sure about that? Here's the last I have regarding my writing about Mr. Simmons' holdings:

    http://www.fool.com/investing/high-growth/2005/10/18/whos-bu...

    Not saying you're wrong just saying I don't know what story you're referring to. Maybe post a link?

    Foolish best,

    Tim (TMFMileHigh and @milehighfool on Twitter)

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