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Nordson Rewards Investors With 15% Dividend Hike on Strong Cash Flow

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Key Takeaways

  • Nordson raised its quarterly dividend 15% to 94 cents per share, payable Oct. 2, 2026.
  • Nordson has increased its dividend for 63 straight years, with a five-year CAGR of 13.7%.
  • Nordson paid $137.4 million in dividends and repurchased about $158.8 million of shares in nine months.

In a shareholder-friendly move, Nordson Corporation (NDSN - Free Report) recently announced a hike in its dividend payout. The company increased its quarterly dividend by 15% to 94 cents per share (annually: $3.76). The new dividend will be paid out on Oct. 2, 2026, to shareholders of record as of Sept. 10.

The move underscores NDSN’s sound financial health as it utilizes free cash flow to enhance its shareholders returns. The five-year compound annual growth rate of its dividend is 13.7%. The company has increased its dividend consecutively for 63 years. Before this, it had hiked its dividend by 5% to 82 cents per share in August 2025.

Sound Capital-Allocation Strategies

Strong cash flows allow Nordson to effectively deploy capital for rewarding its shareholders handsomely through dividend payments and share buybacks. In the first nine months of fiscal 2026, the company paid dividends of $137.4 million, up 3.3% year over year. In the same period, it repurchased shares for approximately $158.8 million. In August 2025, the company’s board authorized the repurchase of up to an additional $0.5 million worth of shares on top of the existing share repurchase authorization. Exiting the third quarter of fiscal 2026, the company had approximately $0.57 million available under the existing share repurchase authorizations.

NDSN’s Zacks Rank and Price Performance

Nordson is benefiting from strength in the Medical and Fluid Solutions segment, driven by growth in engineered fluid solutions and medical product lines. An increase in demand for packaging, industrial coatings, polymer processing and nonwovens product lines is aiding the Industrial Precision Solutions segment.

NDSN currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 44% in the past year compared with the industry’s 3% growth.

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High debt is concerning for NDSN. The company’s international presence exposes it to currency swings and economic challenges in global markets.

Stocks to Consider

Some better-ranked companies from the same space are discussed below:

Generac Holdings Inc. (GNRC - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company delivered a trailing four-quarter average earnings surprise of 13.7%. In the past 60 days, the consensus estimate for GNRC’s 2026 earnings has increased 8.5%.

Crane Company (CR - Free Report) presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 10.4%.

The Zacks Consensus Estimate for CR’s 2026 earnings has increased 3% in the past 60 days.

Helios Technologies (HLIO - Free Report) currently carries a Zacks Rank of 2. HLIO delivered a trailing four-quarter average earnings surprise of 13.1%.

In the past 60 days, the Zacks Consensus Estimate for Helios Technologies’ 2026 earnings has increased 10.4%.

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