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Nordson's (NDSN) Board Approves 31% Hike in Dividend Rate
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Nordson Corporation (NDSN - Free Report) impresses shareholders with an announcement of a 31% increase in the quarterly dividend rate. This is the company’s 58th consecutive year of a dividend increase.
Market sentiments went in favor of Nordson yesterday, registering a 0.79% increase in the share price. The trading session ended at $223.37.
We believe that such shareholder-friendly policies of Nordson reflect a strong cash position and belief in future profitability.
Inside the Headlines
As revealed, the company’s board of directors approved a 31% hike in the quarterly dividend rate, which now stands at 51 cents. The previous quarterly rate was 39 cents. On an annualized basis, the dividend rose to $2.04 from $1.56 per share.
The company will pay out the revised dividend on Sep 7, 2021, to shareholders of record as of Aug 24.
Sound Capital-Allocation Strategies
Nordson uses free resources for the development of its product line, making acquisitions, and rewarding shareholders through share buybacks and dividend payments. Its efficient capital-allocation strategies are aimed at improving values for shareholders.
In the first half of fiscal 2021 (ended April 2021), the company repurchased shares worth $30.3 million. In the year-ago period, share worth $41.9 million were repurchased by the company. Exiting the second quarter of fiscal 2021, it had $422.3 million worth of share buyback authorization left.
It distributed dividends of $45.3 million in the first half of this year, up from $43.9 million in the first half of fiscal 2020 (ended April 2020).
Zacks Rank, Earnings Estimates and Price Performance
Nordson, with a $12.9-billion market capitalization, currently carries a Zacks Rank #4 (Sell). The company is exposed to risks from divestments, high costs and expenses, and international operations. Diversified business structure, commitment toward rewarding shareholders, solid product offerings, buyouts and Nordson Business System might aid.
The company is slated to report third-quarter fiscal 2021 (ended July 2021) results on Aug 30, 2021.
The Zacks Consensus Estimate for its earnings for the fiscal third quarter is pegged at $2.08 per share, whereas that for fiscal 2021 (ending October 2021) is pinned at $7.56. These estimates reflect no change from the 60-day ago figures.
The estimate for fiscal 2022 (ending October 2022), pegged at $8.42, represents an increase of 1.3% from the 60-day-ago figure.
In the past three months, the company’s shares have gained 8.7% against the industry’s decline of 1.9%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the industry are Kadant Inc. (KAI - Free Report) , Altra Industrial Motion Corp. and Dover Corporation (DOV - Free Report) . While Kadant currently sports a Zacks Rank #1 (Strong Buy), both Altra Industrial and Dover carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, earnings estimates for these companies improved for the current year. Further, the earnings surprise for the last reported quarter was 33.11% for Kadant, 8.54% for Altra Industrial and 11.96% for Dover.
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Nordson's (NDSN) Board Approves 31% Hike in Dividend Rate
Nordson Corporation (NDSN - Free Report) impresses shareholders with an announcement of a 31% increase in the quarterly dividend rate. This is the company’s 58th consecutive year of a dividend increase.
Market sentiments went in favor of Nordson yesterday, registering a 0.79% increase in the share price. The trading session ended at $223.37.
We believe that such shareholder-friendly policies of Nordson reflect a strong cash position and belief in future profitability.
Inside the Headlines
As revealed, the company’s board of directors approved a 31% hike in the quarterly dividend rate, which now stands at 51 cents. The previous quarterly rate was 39 cents. On an annualized basis, the dividend rose to $2.04 from $1.56 per share.
The company will pay out the revised dividend on Sep 7, 2021, to shareholders of record as of Aug 24.
Sound Capital-Allocation Strategies
Nordson uses free resources for the development of its product line, making acquisitions, and rewarding shareholders through share buybacks and dividend payments. Its efficient capital-allocation strategies are aimed at improving values for shareholders.
In the first half of fiscal 2021 (ended April 2021), the company repurchased shares worth $30.3 million. In the year-ago period, share worth $41.9 million were repurchased by the company. Exiting the second quarter of fiscal 2021, it had $422.3 million worth of share buyback authorization left.
It distributed dividends of $45.3 million in the first half of this year, up from $43.9 million in the first half of fiscal 2020 (ended April 2020).
Zacks Rank, Earnings Estimates and Price Performance
Nordson, with a $12.9-billion market capitalization, currently carries a Zacks Rank #4 (Sell). The company is exposed to risks from divestments, high costs and expenses, and international operations. Diversified business structure, commitment toward rewarding shareholders, solid product offerings, buyouts and Nordson Business System might aid.
The company is slated to report third-quarter fiscal 2021 (ended July 2021) results on Aug 30, 2021.
The Zacks Consensus Estimate for its earnings for the fiscal third quarter is pegged at $2.08 per share, whereas that for fiscal 2021 (ending October 2021) is pinned at $7.56. These estimates reflect no change from the 60-day ago figures.
Nordson Corporation Price and Consensus
Nordson Corporation price-consensus-chart | Nordson Corporation Quote
The estimate for fiscal 2022 (ending October 2022), pegged at $8.42, represents an increase of 1.3% from the 60-day-ago figure.
In the past three months, the company’s shares have gained 8.7% against the industry’s decline of 1.9%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the industry are Kadant Inc. (KAI - Free Report) , Altra Industrial Motion Corp. and Dover Corporation (DOV - Free Report) . While Kadant currently sports a Zacks Rank #1 (Strong Buy), both Altra Industrial and Dover carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, earnings estimates for these companies improved for the current year. Further, the earnings surprise for the last reported quarter was 33.11% for Kadant, 8.54% for Altra Industrial and 11.96% for Dover.