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Tennant Announces 5% Dividend Hike & 1M Share Buyback

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Machinery company Tennant Company (TNC - Free Report) recently announced a 5% increase in its quarterly dividend rate as well as an additional share buyback program. The twin news reflects the company’s commitment of rewarding its shareholders handsomely.

As revealed, Tennant Company’s board of directors approved a quarterly dividend of 21 cents per share, higher than the prior rate of 20 cents. On an annualized basis, the dividend has increased to 84 cents from 80 cents per share.

Tennant Company will pay the revised dividend on Dec 15 to its shareholders on record as of Nov 30.

Also, Tennant Company’s board of directors authorized a new share buyback program of upto one million common shares to be carried out in the open market or through privately negotiated transactions. The program is in addition to the company’s existing authorized buyback program, of which roughly 0.395 million are left to be repurchased.  

In the first nine months of 2016, Tennant Company paid approximately $10.6 million as dividends and repurchased shares worth $12.8 million. We believe such disbursements reflect the company’s strong cash position and its shareholder-friendly capital allocation strategy.

TENNANT CO Price and Consensus

 

TENNANT CO Price and Consensus | TENNANT CO Quote

Zacks Rank & Stocks to Consider

With a market capitalization of $1.11 billion, Tennant Company carries a Zacks Rank #3 (Hold). Currently, investors interested in the machinery industry can consider stocks like Applied Industrial Technologies, Inc. (AIT - Free Report) , AO Smith Corp. (AOS - Free Report) and Schneider Electric SE (SBGSY - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Applied Industrial Technologies’ earnings estimates for fiscal 2017 and fiscal 2018 have been revised upward over the last 60 days. Average earnings surprise for the last four quarters was a positive 4.93%.
 
AO Smith Corp. reported better-than-expected results in the last four quarters, with a positive earnings surprise of 5.88%. Also, bottom-line expectations for 2016 and 2017 have improved over the past 60 days.

Schneider Electric SE’s earnings estimates for 2017 represent year-over-year growth of 4.65%.

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