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The board of directors of this manufacturer and distributor of lighting fixtures and related components approved a quarterly dividend payout of 15 cents per share (60 cents per share annually), up from the previous dividend payout of 13 cents per share (52 cents per share annually). The amount will be paid out on Feb 14, 2024, to shareholders of record as of Feb 5. Based on the closing price of $239.10 per share on Jan 26, 2024, the stock has a dividend yield of 0.2% and a payout ratio of 4%.
Although it maintained its dividend payout since 2008, the company’s decision to hike its quarterly dividend this time was attributable to improved cash flow generation and efforts to sustain a healthy balance sheet. Its effective allocation of capital also aided in driving its shareholder value.
Here’s What Aiding the Dividend Policy
AYI is intently focusing on expanding its margins and increasing cash generation. These priorities are anchored on the company’s efforts to increase product vitality through new product introductions and enhancements to its existing portfolio, strategically utilizing technology in both its Acuity Brands Lighting and Lighting Controls (ABL) and Intelligent Spaces Group (ISG) businesses and elevating service levels.
During the first quarter of fiscal 2024, the company’s adjusted earnings of $3.72 per share topped the Zacks Consensus Estimate by 20.4% and grew 13.1% year over year. The uptrend was backed by the company’s strong execution of its effective capital-allocation strategy along with increased contributions from its ISG business.
Furthermore, during the quarter, Acuity Brands reported a 1.6% increase in cash flow from operations of $190 million, attributable to an improvement in net income. Its efforts to ensure consistent capital allocation in growing its business and driving shareholders’ value signifies the continuance of outperformance in the near term.
For fiscal 2024, AYI expects net sales in the range of $3.7-$4 billion compared with the reported figure of $3.95 billion in fiscal 2023.
Image Source: Zacks Investment Research
Shares of this Zacks Rank #1 (Strong Buy) company have surged 50.2% in the past three months, outperforming the Zacks Building Products - Lighting industry’s 44.3% growth.
The positive trend is solidified by the upward movement of the fiscal 2024 earnings estimates to $14.79 per share from $14.44 per share in the past seven days. AYI has also delivered a trailing four-quarter earnings surprise of 13.9%, on average.
Other Key Picks
Here are some other top-ranked stocks from the Construction sector.
MLM delivered a trailing four-quarter earnings surprise of 37.3%, on average. The stock has gained 44.4% in the past year. The Zacks Consensus Estimate for MLM’s 2024 sales and earnings per share (EPS) indicates growth of 9.5% and 13.1%, respectively, from a year ago.
Armstrong World Industries, Inc. (AWI - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter earnings surprise of 7.9%, on average. Shares of AWI have soared 30.1% in the past year.
The Zacks Consensus Estimate for AWI’s 2024 sales and EPS indicates a rise of 1.4% and 6.8%, respectively, from the prior-year levels.
NVR, Inc. (NVR - Free Report) currently carries a Zacks Rank of 2. NVR delivered a trailing four-quarter earnings surprise of 14.6%, on average. The stock has gained 40.1% in the past year.
The Zacks Consensus Estimate for NVR’s 2024 sales and EPS indicates a decline of 4.1% and 10.2%, respectively, from the prior-year levels.
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Acuity Brands (AYI) Cheers Investors With 15% Dividend Hike
Acuity Brands, Inc. (AYI - Free Report) rewarded investors with a 15.4% hike in its quarterly cash dividend payments.
The board of directors of this manufacturer and distributor of lighting fixtures and related components approved a quarterly dividend payout of 15 cents per share (60 cents per share annually), up from the previous dividend payout of 13 cents per share (52 cents per share annually). The amount will be paid out on Feb 14, 2024, to shareholders of record as of Feb 5. Based on the closing price of $239.10 per share on Jan 26, 2024, the stock has a dividend yield of 0.2% and a payout ratio of 4%.
Although it maintained its dividend payout since 2008, the company’s decision to hike its quarterly dividend this time was attributable to improved cash flow generation and efforts to sustain a healthy balance sheet. Its effective allocation of capital also aided in driving its shareholder value.
Here’s What Aiding the Dividend Policy
AYI is intently focusing on expanding its margins and increasing cash generation. These priorities are anchored on the company’s efforts to increase product vitality through new product introductions and enhancements to its existing portfolio, strategically utilizing technology in both its Acuity Brands Lighting and Lighting Controls (ABL) and Intelligent Spaces Group (ISG) businesses and elevating service levels.
During the first quarter of fiscal 2024, the company’s adjusted earnings of $3.72 per share topped the Zacks Consensus Estimate by 20.4% and grew 13.1% year over year. The uptrend was backed by the company’s strong execution of its effective capital-allocation strategy along with increased contributions from its ISG business.
Furthermore, during the quarter, Acuity Brands reported a 1.6% increase in cash flow from operations of $190 million, attributable to an improvement in net income. Its efforts to ensure consistent capital allocation in growing its business and driving shareholders’ value signifies the continuance of outperformance in the near term.
For fiscal 2024, AYI expects net sales in the range of $3.7-$4 billion compared with the reported figure of $3.95 billion in fiscal 2023.
Image Source: Zacks Investment Research
Shares of this Zacks Rank #1 (Strong Buy) company have surged 50.2% in the past three months, outperforming the Zacks Building Products - Lighting industry’s 44.3% growth.
The positive trend is solidified by the upward movement of the fiscal 2024 earnings estimates to $14.79 per share from $14.44 per share in the past seven days. AYI has also delivered a trailing four-quarter earnings surprise of 13.9%, on average.
Other Key Picks
Here are some other top-ranked stocks from the Construction sector.
Martin Marietta Materials, Inc. (MLM - Free Report) currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
MLM delivered a trailing four-quarter earnings surprise of 37.3%, on average. The stock has gained 44.4% in the past year. The Zacks Consensus Estimate for MLM’s 2024 sales and earnings per share (EPS) indicates growth of 9.5% and 13.1%, respectively, from a year ago.
Armstrong World Industries, Inc. (AWI - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter earnings surprise of 7.9%, on average. Shares of AWI have soared 30.1% in the past year.
The Zacks Consensus Estimate for AWI’s 2024 sales and EPS indicates a rise of 1.4% and 6.8%, respectively, from the prior-year levels.
NVR, Inc. (NVR - Free Report) currently carries a Zacks Rank of 2. NVR delivered a trailing four-quarter earnings surprise of 14.6%, on average. The stock has gained 40.1% in the past year.
The Zacks Consensus Estimate for NVR’s 2024 sales and EPS indicates a decline of 4.1% and 10.2%, respectively, from the prior-year levels.