Why WD-40 Company (WDFC) is a Reliable Choice Among Income Stocks

WD-40 Company (NASDAQ:WDFC) is included among the 11 Best Income Stocks to Buy According to Hedge Funds.

WD-40 Company (NASDAQ:WDFC) is an American firm, that is known for its household and multi-use products. The company manages a broad portfolio of well-known brands across maintenance, home care, and cleaning categories. Its products are distributed in more than 176 countries and territories worldwide.

In the third quarter of fiscal 2025, WD-40 Company (NASDAQ:WDFC)’s core maintenance segment saw a 2% increase in sales, bringing year-to-date growth to 6%, in line with its long-term targets. In addition, the company achieved a gross margin of 56% in the quarter, marking a 310-basis-point improvement from the previous year. This puts the company on track to surpass its 55% long-term gross margin goal for fiscal 2025, one year ahead of schedule.

WD-40 Company (NASDAQ:WDFC) also reported a strong cash position. The company ended the quarter with $51.6 million available in cash and cash equivalents and generated nearly $60 million in operating cash flow. Due to this solid cash position, the company raised its payouts for 17 consecutive years. It currently offers a quarterly dividend of $0.94 per share and has a dividend yield of 1.75%, as of July 31.

While we acknowledge the potential of WDFC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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