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IDEX (IEX) Announces 11% Hike in Quarterly Dividend Rate

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IDEX Corporation (IEX - Free Report) , on May 6, announced that it is rewarding shareholders with an increase in the quarterly dividend rate. We believe that such shareholder-friendly policies of the company reflect a strong cash position.

Inside the Headlines

IDEX’s board of directors approved an 11% or 6 cents per share hike in the quarterly dividend rate — from 54 cents to 60 cents. On an annualized basis, the dividend increased to $2.40 from $2.16 per share.

IDEX will pay out the revised dividend on May 27, 2022, to shareholders on record as of May 17.

Sound Shareholder-Friendly Policies

The company firmly believes in rewarding shareholders handsomely through dividend payments. The company’s cash dividend increased from $1.45 per share in 2017 to $2.12 in 2021. In May 2021, it raised the quarterly dividend rate by 8%. Further, the company paid out a dividend of $41.4 million to its shareholders in the first quarter of 2022.

We believe that impressive financial performance in the quarters ahead will enable it to continue rewarding its shareholders handsomely.

Earnings Projections and Price Performance

IDEX, with approximately $14.3 billion market capitalization, currently carries a Zacks Rank #2 (Buy). In the first quarter of 2022, the company’s orders totaled $856 million, reflecting year-over-year growth of 20% (up 16% on an organic basis). For 2022, the company anticipates year-over-year organic sales growth of 6-8%. Earnings per share for the year are predicted to be $7.50-$7.63, higher than $6.30 recorded in 2021.

In the past 30 days, the Zacks Consensus Estimate for earnings has been raised 3.2% to $7.69 for 2022 and 3.6% to $8.38 for 2023 Also, earnings estimates for the second quarter of 2022 have increased 0.5% to $1.90 per share.

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In the past three months, the stock has declined 3.4% compared with the industry’s decrease of 10.1%.

Other Key Picks

Some other top-ranked companies from the same space are discussed below.

Applied Industrial Technologies, Inc. (AIT - Free Report) presently sports a Zacks Rank #1 (Strong Buy). The company delivered a four-quarter earnings surprise of 25.40%, on average.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Applied Industrial’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022) in the past 30 days. Its shares have gained 10.9% in the past three months.

Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank #2. Its earnings surprise in the last four quarters was 2.03%, on average.

In the past 30 days, Roper’s earnings estimates have increased 1.1% for 2022. ROP’s shares have lost 0.7% in the past three months.

Ferguson plc (FERG - Free Report) presently carries a Zacks Rank #2. Its earnings surprise in the last reported quarter was 11.56%.

In the past 30 days, Ferguson’s earnings estimates have been stable for fiscal 2022 (ending July 2022). FERG’s shares have lost 24% in the past three months.

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