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Innospec Inc. (NASDAQ:IOSP) is included among the 10 Most Popular Small Cap Stocks to Buy.

Innospec Inc. (NASDAQ:IOSP) is a global specialty company with manufacturing, research centers, and operations in 24 countries. The company provides chemicals, additives, and formulations for markets including agrochemicals, construction, fuel additives, home care, metal extraction, oilfield, personal care, polymers, and waxes.

On May 8, Innospec Inc. (NASDAQ:IOSP) declared a semi-annual dividend of $0.92 per share, up 5.7% from its prior payout of $0.87. The dividend is payable on May 29 to shareholders as of the May 19 record. Moreover, the company also announced a new share repurchase program of $75 million to further enhance its shareholder returns. IOSP currently boasts an annual dividend yield of 2.33%.

Innospec Inc. (NASDAQ:IOSP) exceeded estimates in both profits and revenue in its Q1 2026 results on May 7. While the company’s revenue increased 3% YoY to $453.2 million, its adjusted EBITDA of $43.7 million was down 19% compared to last year. Moreover, excluding special items in both years, the company’s adjusted EPS for the quarter was $1.05, versus $1.42 in the year-ago period.

While we acknowledge the potential of IOSP 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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