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Donaldson (DCI) Announces 4.5% Hike in Quarterly Dividend Rate
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Donaldson Company, Inc. (DCI - Free Report) yesterday announced rewards for its shareholders in the form of a hike in the quarterly dividend rate. We believe that such shareholder-friendly policies of the company reflect a strong cash position.
The company’s shares gained 1.8% yesterday, ending the trading session at $50.60.
Inside the Headlines
As noted, the company’s board of directors approved a 4.5% hike in the quarterly dividend rate. The rate now stands at 23 cents per share, higher than the previous quarterly dividend rate of 22 cents. On an annual basis, the dividend rate now stands at 92 cents per share, up from the previous rate of 88 cents.
Donaldson will pay the revised quarterly dividend on Jun 24, 2022, to shareholders of record as of Jun 9.
Sound Shareholder-Friendly Policies
Donaldson firmly believes in rewarding shareholders handsomely through dividend payments and share buybacks. Its cash dividend payout per share increased from 78 cents in fiscal 2019 (ended July 2019) to 85 cents in fiscal 2021 (ended July 2021). In May 2021, it raised the quarterly dividend rate by 4.8%.
The company’s payouts were 44 cents per share or $54.6 million in the first half of fiscal 2022 (ended January 2022). Also, it bought back shares worth $115.6 million in the first half of the current fiscal year.
We believe that impressive financial performance in the quarters ahead will enable the company to continue rewarding shareholders handsomely through dividend hikes and share-buyback activities.
With a market capitalization of $6.3 billion, Donaldson currently carries a Zacks Rank #3 (Hold). The company is well-positioned to benefit from solid product offerings, a diversified business structure and healthy demand in the quarters ahead. Handsome rewards to shareholders raise its attractiveness. However, softness in the company’s On-Road business is concerning.
Image Source: Zacks Investment Research
In the past three months, the company’s shares have lost 6.8% compared with the 13.1% decline recorded by the industry.
In the past 60 days, the Zacks Consensus Estimate for earnings has remained stable for both fiscal 2022 (ending July 2022) and fiscal 2023 (ending July 2023).
Stocks to Consider
Some better-ranked companies from the industrial products sector are discussed below:
AIT’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022) in the past 60 days. Its shares have declined 1.8% in the past three months.
Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2%, on average.
In the past 60 days, ROP’s earnings estimates have increased 1.1% for 2022. The stock has declined 5% in the past three months.
IDEX Corporation (IEX - Free Report) is presently Zacks #2 Ranked. IEX’s earnings surprise in the last four quarters was 2.8%, on average.
In the past 60 days, the stock’s earnings estimates have increased 3.2% for 2022. The stock has declined 3.5% in the past three months.
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Donaldson (DCI) Announces 4.5% Hike in Quarterly Dividend Rate
Donaldson Company, Inc. (DCI - Free Report) yesterday announced rewards for its shareholders in the form of a hike in the quarterly dividend rate. We believe that such shareholder-friendly policies of the company reflect a strong cash position.
The company’s shares gained 1.8% yesterday, ending the trading session at $50.60.
Inside the Headlines
As noted, the company’s board of directors approved a 4.5% hike in the quarterly dividend rate. The rate now stands at 23 cents per share, higher than the previous quarterly dividend rate of 22 cents. On an annual basis, the dividend rate now stands at 92 cents per share, up from the previous rate of 88 cents.
Donaldson will pay the revised quarterly dividend on Jun 24, 2022, to shareholders of record as of Jun 9.
Sound Shareholder-Friendly Policies
Donaldson firmly believes in rewarding shareholders handsomely through dividend payments and share buybacks. Its cash dividend payout per share increased from 78 cents in fiscal 2019 (ended July 2019) to 85 cents in fiscal 2021 (ended July 2021). In May 2021, it raised the quarterly dividend rate by 4.8%.
The company’s payouts were 44 cents per share or $54.6 million in the first half of fiscal 2022 (ended January 2022). Also, it bought back shares worth $115.6 million in the first half of the current fiscal year.
We believe that impressive financial performance in the quarters ahead will enable the company to continue rewarding shareholders handsomely through dividend hikes and share-buyback activities.
Zacks Rank, Price Performance & Estimates Estimate Trend
With a market capitalization of $6.3 billion, Donaldson currently carries a Zacks Rank #3 (Hold). The company is well-positioned to benefit from solid product offerings, a diversified business structure and healthy demand in the quarters ahead. Handsome rewards to shareholders raise its attractiveness. However, softness in the company’s On-Road business is concerning.
Image Source: Zacks Investment Research
In the past three months, the company’s shares have lost 6.8% compared with the 13.1% decline recorded by the industry.
In the past 60 days, the Zacks Consensus Estimate for earnings has remained stable for both fiscal 2022 (ending July 2022) and fiscal 2023 (ending July 2023).
Stocks to Consider
Some better-ranked companies from the industrial products sector are discussed below:
Applied Industrial Technologies, Inc. (AIT - Free Report) presently sports a Zacks Rank #1 (Strong Buy). AIT delivered a trailing four-quarter earnings surprise of 25.4%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
AIT’s earnings estimates have increased 5.9% for fiscal 2022 (ending June 2022) in the past 60 days. Its shares have declined 1.8% in the past three months.
Roper Technologies, Inc. (ROP - Free Report) presently has a Zacks Rank #2 (Buy). Its earnings surprise in the last four quarters was 2%, on average.
In the past 60 days, ROP’s earnings estimates have increased 1.1% for 2022. The stock has declined 5% in the past three months.
IDEX Corporation (IEX - Free Report) is presently Zacks #2 Ranked. IEX’s earnings surprise in the last four quarters was 2.8%, on average.
In the past 60 days, the stock’s earnings estimates have increased 3.2% for 2022. The stock has declined 3.5% in the past three months.