Graco Inc. ( GGG Quick Quote GGG - Free Report) , on Dec 4, announced that it is rewarding shareholders with hike in quarterly dividend rate. The raise is supported by the company’s strong cash position. Notably, the company’s shares moved up 1.3% to close at $66.99 on Friday. Inside the Headlines
As revealed, Graco’s board of directors approved a 7.1% or 1.25 cents per share hike in the quarterly dividend rate, which now moved from 17.5 cents to 18.75 cents. On an annualized basis, the dividend increased to 75 cents from 70 cents per share.
Graco will pay out the revised amount on Feb 3, 2021, to shareholders on record as of Jan 19. Shareholder-Friendly Policies
Graco firmly believes in rewarding shareholders handsomely through dividend payments. In the last two years (2018-2019), the company’s cash dividend paid out increased from 53 cents per share in 2018 to 64 cents in 2019. Also, in December 2019, it had raised the quarterly dividend rate by 9.4%.
Further, in the first three quarters of 2020, the company paid out a dividend of $87.7 million in cash to its shareholders, reflecting an increase of 9.9% from the year-ago comparable period. We believe that impressive financial performance in the quarters ahead is likely to enable it to continue rewarding its shareholders handsomely. Zacks Rank, Price Performance and Estimate Revisions
Graco, with approximately $11.2 billion market capitalization, currently carries a Zacks Rank #2 (Buy). The company is poised to benefit from its exposure in new markets, global expansion and buyout activities. Also, exiting the third quarter of 2020, the company’s cash and cash equivalents totaled $424.7 million, whereas it had a long-term debt balance of $275 million.
In the past 60 days, the Zacks Consensus Estimate for earnings has increased 17.2% to $1.84 for 2020 and 14.3% to $2.08 for 2021. Also, earnings estimates for the fourth quarter of 2020 have increased 21.4% to 51 cents per share. In the past six months, the stock has gained 25.3% compared with the industry’s increase of 19.6%. Other Key Picks
Some other top-ranked stocks from the same space are
Altra Industrial Motion Corp. ( AIMC Quick Quote AIMC - Free Report) , Applied Industrial Technologies, Inc. ( AIT Quick Quote AIT - Free Report) and Dover Corporation ( DOV Quick Quote DOV - Free Report) . While Altra Industrial currently sports a Zacks Rank #1 (Strong Buy), Applied Industrial and Dover carry a Zacks Rank #2. You can see . the complete list of today’s Zacks #1 Rank stocks here Altra Industrial delivered a positive earnings surprise of 50.07%, on average, in the trailing four quarters. Applied Industrial delivered a positive earnings surprise of 14.68%, on average, in the trailing four quarters. Dover delivered a positive earnings surprise of 18.10%, on average, in the trailing four quarters. Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better. See these 7 breakthrough stocks now>>