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Brady Rewards Shareholders With Hike in Annual Dividend Rate

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Brady Corporation (BRC - Free Report) announced rewards yesterday for its shareholders in the form of a hike in the annual dividend rate. This hike is the company’s 35th consecutive yearly increase.

The news seems to be the prime reason behind roughly 0.6% gain in its share price at the end of the trading session yesterday. The closing price was $46.11.

We believe that such shareholder-friendly policies of the company reflect a strong cash position and belief in profitability growth.

Inside the Headlines

The security services provider’s board of directors approved a 1.1% or 1 cent per share hike in the annual dividend rate on Sep 14. The rate now stands at 88 cents per share. On a quarterly basis, the dividend rate has been raised from 21.75 cents to 22 cents.

The company will pay the revised quarterly dividend on Oct 30, 2020, to shareholders of record as of Oct 9.

Sound Capital-Allocation Strategies

Brady follows sound capital-allocation strategies to improve shareholder value. It uses its free resources for innovation investments, working on the automation of manufacturing facilities and rewarding shareholders through dividend payments.

In the first nine months of fiscal 2020 (ended April 30), the company paid out dividends of $34.4 million, higher than $33.5 million disbursed in the year-ago comparable period.

Zacks Rank & Estimate Trends

With a market capitalization of $2.4 billion, Brady currently carries a Zacks Rank #3 (Hold). In the past 60 days, earnings estimates for the company have been increased. Currently, the Zacks Consensus Estimates for its earnings stands at $2.60 for fiscal 2021 (ending July 2021), reflecting an increase of 0.8% from the 60-day-ago figure.

Brady Corporation Price and Consensus

 

Brady Corporation Price and Consensus

Brady Corporation price-consensus-chart | Brady Corporation Quote

In the past three months, the company’s shares have declined 6.1% against the industry’s growth of 11.1%.



 

Stocks to Consider

Some better-ranked stocks in the industry are Fortune Brands Home & Security, Inc. , Ituran Location and Control Ltd. (ITRN - Free Report) and Johnson Controls International plc (JCI - Free Report) . While Fortune Brands currently sports a Zacks Rank #1 (Strong Buy), both Ituran Location and Johnson Controls carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, earnings estimates for these stocks have improved for the current year. Further, earnings surprise for the last reported quarter was 59.32% for Fortune Brands, 88.89% for Ituran Location and 34% for Johnson Controls.

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