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Nordson (NDSN) Announces 27% Dividend Hike, Shares Gain

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In a shareholder-friendly move, Nordson Corporation (NDSN - Free Report) announced a 27% hike in its dividend payout. Following this, shares of the company gained 3.3% at the close of business on Aug 10.

The move underscores the company’s sound financial health as it utilizes free cash flow for enhancing shareholders’ returns. This marks the company’s 59th consecutive year of dividend increase.

Nordson raised its quarterly cash dividend to 65 cents per share ($2.60 annually) from 51. The new dividend will be paid to shareholders on Sep 6, 2022, of record as on Aug 23, 2022. The dividend yield, based on the new payout and its Aug 10 closing price, is 1.1%.

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 six months of fiscal 2022, the company paid out dividends of $59.3 million to its shareholders and repurchased shares worth $140.5 million. Exiting the fiscal second quarter, the company was left to repurchase shares worth $253.8 million under its share repurchase program.

Zacks Rank & Key Picks

Nordson carries a Zacks Rank #3 (Hold).

Some better-ranked stocks within the broader Industrial Products sector are as follows:

Titan International, Inc. (TWI - Free Report) presently flaunts a Zacks Rank #1 (Strong Buy). Its earnings surprise in the last four quarters was 47%, on average. You can see the complete list of today’s Zacks #1 Rank stocks.

Titan International has an estimated earnings growth rate of 157.7% for the current year. Shares of the company have rallied 39.1% in the past six months.

Greif, Inc. (GEF - Free Report) presently sports a Zacks Rank #1. GEF delivered a trailing four-quarter earnings surprise of 22.9%, on average.

Greif has an estimated earnings growth rate of 36.8% for the current year. Shares of the company have gained 24.3% in the past six months.


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