IDEX Corporation (IEX - Free Report) has announced that it is rewarding shareholders in the form of a hike in the quarterly dividend rate. We believe that such shareholder-friendly policies reflect its strong cash position and its commitment toward returning high value to shareholders.
As revealed, the company’s board of directors approved 16% or 7 cents per share hike in the quarterly dividend rate, which now moved from 43 cents to 50 cents. On an annualized basis, the dividend increased to $2.00 per share from $1.72.
IDEX will pay the revised dividend on May 31, 2019, to shareholders of record as of May 17.
Sound Shareholder-Friendly Policies
The company rewards its shareholders mainly through dividend payments and share buybacks. Over the last three years (2016-2018), it hiked the dividend payment every year, with $1.34 per share distributed in 2016 and $1.66 paid in 2018. Also, the company’s spending on share buybacks totaled $173.9 million in 2018, up from $57.3 million in 2016.
In the first quarter of 2019, IDEX distributed dividends of $33 million while repurchased 370 thousand shares for $51.7 million. Also, exiting the first quarter, its share count was roughly 76.3 million.
We believe that further share buybacks and dividend payments will keep investors interested in the stock.
Zacks Rank & Stocks to Consider
With a market capitalization of $11.7 billion, IDEX currently carries a Zacks Rank #3 (Hold). In the past three months, the company’s shares have increased 9.5%, in line with the industry.
Further, in the past 30 days, earnings estimates for IDEX have increased 1.6% to $5.82 for 2019 and 0.3% to $6.15 for 2020. On a year-over-year basis, estimates reflect growth of 7.6% for 2019 and 5.8% for 2020.
IDEX Corporation Price and Consensus