In a bid to reward shareholders,
Patrick Industries, Inc. ( PATK Quick Quote PATK - Free Report) recently announced a 17.9% hike in its quarterly dividend. The company has been driving shareholder value through regular dividend hikes, share repurchase programs and reinvesting in the business. On Nov 12, Patrick increased its quarterly cash dividend to 33 cents per share from 28 cents paid earlier. The dividend will be payable on Dec 13, 2021 to its shareholders of record as of the close of business on Nov 29. Since December 2019, Patrick's board of directors adopted a regular quarterly cash dividend policy. It paid cash dividends of $23.6 and $5.8 million, in 2020 and 2019, respectively. A solid capital allocation strategy — which is a testimony to the fact that it is well positioned amid the COVID-19 pandemic — drives long-term sustainable growth and shareholder value. On Nov 20, 2020, its board approved a 12% increase in the dividend rate to 28 cents per share from 25 cents. We note that dividend hikes are becoming a regular event for this leading manufacturer, and distributer of components and building products. Patrick paid dividends of $23.6 million in 2020. Image Source: Zacks Investment Research
Patrick is also highly active on the buyback front. In 2020, the company repurchased $23.1 million shares of its common stock. Subsequently, in the first nine months of 2021, it returned $19.5 million to shareholders through dividends and $31.9 million through the repurchase of common stock.
Can Patrick Sustain Dividend Hikes?
Patrick’s business has been banking on improving housing market prospects, accretive acquisitions and solid geographic expansion efforts. During the first nine months of 2021, the company’s adjusted earnings of $7.01 per share increased almost 173% year over year on the back of solid end-market demand, operational efficiencies in production and accretive acquisitions.
For fiscal 2022, PATK — which currently carries a Zacks Rank #2 (Buy) — expects solid trends in both housing and industrial markets, with unit growth in mid-to-high single digits. Although shares of Patrick have underperformed the Zacks Building Products - Mobile Homes and RV Builders industry in the past year, estimates have moved up in the past 30 days. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Other Top-Ranked Stocks to Consider in the Industry Skyline Champion Corporation ( SKY Quick Quote SKY - Free Report) — the largest independent, publicly-traded, factory-built housing company in North America — presently sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 48.3%, on average. The Zacks Consensus Estimate for Skyline’s earnings per share for the current year has improved 23.9% in the past 30 days. Shares of SKY have jumped 155.6% in the past year. Cavco Industries, Inc. ( CVCO Quick Quote CVCO - Free Report) — This Phoenix, AZ-based designer and producer of factory-built housing products sports a Zacks Rank #1 at present. The company has a trailing four-quarter earnings surprise of 30.5%, on average. The Zacks Consensus Estimate for Cavco’s earnings per share for the current year has improved 17.2% in the past 30 days. Shares of CVCO have jumped 48.4% in the past year. Thor Industries, Inc. ( THO Quick Quote THO - Free Report) — the world's largest manufacturer of recreational vehicles — currently sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 42.5%, on average. The Zacks Consensus Estimate for Thor Industries’ earnings per share for the current year has improved 20.4% in the past 60 days. Shares of THO have jumped 30.2% in the past year.