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Lindsay (LNN) Increases Quarterly Cash Dividend by 3.3%

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Lindsay Corporation (LNN - Free Report) has increased its quarterly cash dividend by 3.3%. The company will now pay a dividend of 31 cents per share, up from the 30 cents paid earlier. The raised dividend will be paid on Aug 31, to shareholders of record as on Aug 17, 2018.

Based on the increased rate, the annual dividend comes to $1.24 a share, resulting in yield of about 1.3%, considering Lindsay’s closing price of $94.36 on Jun 27. The latest dividend yield is better than the industry’s yield 0.5%.

The company has been consistently raising its dividends. The last dividend hike was announced in July 2017, when it was raised by 3.4% from 29 cents per share to 30 cents per share. This reflects Lindsay’s continued efforts to boost shareholders’ wealth.

Since fiscal 2010, Lindsay has raised its dividend by 265%. From paying 8.5 cents a share as quarterly dividend in fiscal 2010, the company has come a long way in displaying its capital strength.

Notably, Lindsay’s capital-allocation plan is to continue investing in revenue and earnings growth, combined with a defined process for enhancing returns to stockholders. For fiscal 2018, the company projects its capital expenditures at $10-$12 million, including equipment replacement and productivity improvements.

However, Lindsay has underperformed its industry with respect to price performance in a year’s time mainly due to tough agricultural market in North America. The stock has gained around 7%, while the industry has recorded growth of 9% during the same time frame.



 

Zacks Rank & Stocks to Consider

Lindsay carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same sector include DMC Global Inc. (BOOM - Free Report) , Actuant Corporation (ATU - Free Report) and Terex Corporation (TEX - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

DMC Global has a long-term earnings growth rate of 20%. Its shares have appreciated 251%, over the past year.

Actuant has a long-term earnings growth rate of 15.6%. The company’s shares have rallied 19%, in the past year.

Terex has an expected long-term earnings growth rate of 21%. The stock has gained 13% in a year’s time.

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