The Timken Company (TKR - Free Report) announced rewards for its shareholders in the form of a hike in the quarterly dividend rate. Its shares gained 3.3% on Friday, closing the trading session at $71.07.
We believe that such shareholder-friendly policies of the company reflect a strong cash position and belief in growth.
Inside the Headlines
Its board of directors approved a 3.6% hike in the quarterly dividend rate. The rate now stands at 29 cents per share. The previous quarterly dividend rate was 28 cents. On an annual basis, the dividend rate now stands at $1.16 per share, up from the previous rate of $1.12.
The company will pay the revised quarterly dividend on Dec 3, 2020, to shareholders of record as of Nov 24, 2020.
Sound Shareholder-Friendly Policies
Timken is committed toward rewarding shareholders handsomely through dividend payments and share buybacks.
Its cash dividend payout increased from $1.07 per share in 2017 to $1.12 in 2019. Also, the company’s payouts were 84 cents per share or $65 million in the first three quarters of 2020.
Share repurchases by Timken totaled $204.6 million in the last three years. Also, it bought back treasury shares worth $42.3 million in the first three quarters of 2020.
Due to the adversities caused by the pandemic, Timken suspended its share buyback actions in the first half of 2020. However, the company kept its dividend payment policy intact. Going forward, an improvement in financial performances might enable the company to reward shareholders handsomely.
Zacks Rank & Estimates Trend
With a market capitalization of $5.4 billion, Timken currently carries a Zacks Rank #2 (Buy). The company is well-poised to gain from a diversified business structure, strength in the renewable energy market, and cost-saving actions. However, market weakness caused by the pandemic is concerning.
In the past three months, the company’s shares have gained 29.7% compared with 14.9% growth recorded by the industry.
In the past 30 days, Timken’s earnings estimates have been raised by 12.1% to $4.16 for 2020 and 9% to $4.74 for 2021. Also, the consensus estimate for the fourth quarter of 2020 has grown 31.9% to 91 cents.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
The Timken Company (TKR - Free Report) announced rewards for its shareholders in the form of a hike in the quarterly dividend rate. Its shares gained 3.3% on Friday, closing the trading session at $71.07.
We believe that such shareholder-friendly policies of the company reflect a strong cash position and belief in growth.
Inside the Headlines
Its board of directors approved a 3.6% hike in the quarterly dividend rate. The rate now stands at 29 cents per share. The previous quarterly dividend rate was 28 cents. On an annual basis, the dividend rate now stands at $1.16 per share, up from the previous rate of $1.12.
The company will pay the revised quarterly dividend on Dec 3, 2020, to shareholders of record as of Nov 24, 2020.
Sound Shareholder-Friendly Policies
Timken is committed toward rewarding shareholders handsomely through dividend payments and share buybacks.
Its cash dividend payout increased from $1.07 per share in 2017 to $1.12 in 2019. Also, the company’s payouts were 84 cents per share or $65 million in the first three quarters of 2020.
Share repurchases by Timken totaled $204.6 million in the last three years. Also, it bought back treasury shares worth $42.3 million in the first three quarters of 2020.
Due to the adversities caused by the pandemic, Timken suspended its share buyback actions in the first half of 2020. However, the company kept its dividend payment policy intact. Going forward, an improvement in financial performances might enable the company to reward shareholders handsomely.
Zacks Rank & Estimates Trend
With a market capitalization of $5.4 billion, Timken currently carries a Zacks Rank #2 (Buy). The company is well-poised to gain from a diversified business structure, strength in the renewable energy market, and cost-saving actions. However, market weakness caused by the pandemic is concerning.
In the past three months, the company’s shares have gained 29.7% compared with 14.9% growth recorded by the industry.
In the past 30 days, Timken’s earnings estimates have been raised by 12.1% to $4.16 for 2020 and 9% to $4.74 for 2021. Also, the consensus estimate for the fourth quarter of 2020 has grown 31.9% to 91 cents.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on WOR - FREE
Get the latest research report on AP - FREE
Get the latest research report on TKR - FREE
Get the latest research report on TRS - FREE