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Kadant Rewards Shareholders With 6.3% Dividend Increase

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In a shareholder-friendly move, Kadant Inc. (KAI - Free Report) recently raised its quarterly dividend by 6.3% to 34 cents per share (annually: $1.36). The new dividend will be paid out on May 7, 2025, to shareholders of record as of April 9.

The latest dividend hike underscores Kadant’s sound financial health as it utilizes free cash flow to enhance shareholders’ returns.

In fiscal 2024, KAI rewarded shareholders with $14.7 million in dividends. In 2023, the company paid dividends worth $13.2 million. In May 2024, Kadant announced that the board of directors approved share repurchase of up to $50.0 million during the period from May 16, 2024, to May 16, 2025.  It’s worth noting that in 2024, KAI generated an adjusted free cash flow of $134.3 million.

KAI’s Zacks Rank & Price Performance

Kadant currently carries a Zacks Rank #3 (Hold). In the past year, the company’s shares have gained 15% against the industry’s 0.5% decline.

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KAI is gaining from strength in the Flow Control segment, driven by robust demand for capital equipment products in North America. Strong momentum in the fiber processing business augurs well for the company’s Industrial Processing segment.

However, the rising cost of sales due to higher material costs and increasing selling and administrative expenses pose a threat to the bottom line. Given the company’s international exposure, forex woes are weighing on its top line.

Stocks to Consider

Some better-ranked companies are discussed below.

RBC Bearings Incorporated (RBC - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

RBC delivered a trailing four-quarter average earnings surprise of 4.9%. In the past 60 days, the Zacks Consensus Estimate for RBC’s fiscal 2025 earnings has increased 1.2%.

Enersys (ENS - Free Report) presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 2.2%.

In the past 60 days, the consensus estimate for ENS’ fiscal 2025 earnings has increased 7.2%.

Applied Industrial Technologies (AIT - Free Report) presently carries a Zacks Rank of 2. AIT delivered a trailing four-quarter average earnings surprise of 5.3%.

In the past 60 days, the consensus estimate for AIT’s fiscal 2025 earnings has inched up 1.4%.

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