H.B. Fuller's Dividend Yield Signals 20% Upside, Analyst Says

H.B. Fuller (FUL) looks cheap by one measure. The adhesives maker's forward dividend yield sits at roughly 1.53%, well above its five-year average of 1.22%. That gap suggests the stock could be worth about $77 a share, or nearly 20% more than its current $60 price, according to a bullish write-up on Quality At A Fair Price's Substack.

FUL's trailing P/E is 20.72; its forward P/E drops to 12.50. The valuation disconnect stands out because the company has kept its dividend growing for 57 straight years. The 10-year dividend CAGR runs roughly 6.1%, and the recent three-year clip has accelerated to near 8%. That acceleration points to improving earnings power, the Substack author argued.

The company makes adhesives, sealants, coatings, and specialty chemicals for industrial and consumer markets. Demand has held up across economic cycles, and cash flow remains solid. The author projects earnings growing at a CAGR above 14% on continued operational efficiencies and stable industrial demand.

Hedge funds own 23 positions in FUL, up from 22 last quarter. That puts the stock well below the top tier of institutional crowding.

Eastman Chemical (EMN) – a previous pick by the same author, Kristopher Rymer – has fallen roughly 19% since Rymer's January 2025 write-up. Rymer stressed EMN's molecular recycling leadership. FUL's thesis leans harder on valuation and dividend durability. | EMN stock page |

The Substack piece contrasted FUL's profile with AI stocks it says offer higher potential returns over a shorter horizon. It highlighted one it sees as having 10,000% upside potential.