In a shareholder-friendly move, Donaldson Company, Inc. DCI has announced a hike in its dividend payout. The company increased its quarterly dividend by 8.7% to 25 cents per share (annually: $1.00). The new dividend will be paid out on Jun 23 to shareholders of record as of Jun 7.
The move underscores DCI’s sound financial health as it utilizes free cash flow to enhance its shareholders’ returns. This marks Donaldson’s 27th consecutive year of annual dividend increase. DCI has been paying dividends every quarter for the last 67 years.
The dividend yield, based on the new payout and its May 24 closing price of $62.79 per share, is 1.6%.
Donaldson Company, Inc. Price
Donaldson Company, Inc. price | Donaldson Company, Inc. Quote
Prior to this, Donaldson had hiked its dividend by 4.5% to 23 cents per share in May 2022.
Sound Capital-Allocation Strategies
Strong cash flows allow Donaldson to effectively deploy capital for making acquisitions, repurchasing shares and paying out dividends. Dividend payments totaled $110.1 million in fiscal 2022 (ended July 2022) and $56.2 million in the first six months of fiscal 2023 (ended January 2023). The company bought back shares worth $171 million in fiscal 2022 and $115.2 million in the first six months of fiscal 2023. We believe such disbursements highlight the company’s operational strength and commitment to enhance shareholders’ wealth.
Zacks Rank & Stocks to Consider
DCI currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Industrial Products sector are discussed below:
Ingersoll Rand Inc. IR presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
IR delivered a trailing four-quarter earnings surprise of 12.6%, on average. In the past 60 days, estimates for Ingersoll Rand’s 2023 earnings have increased 6%. The stock has improved 7.1% in the past six months.
Alamo Group Inc. ALG presently sports a Zacks Rank of 1. ALG delivered a trailing four-quarter earnings surprise of 17.7%, on average.
In the past 60 days, estimates for Alamo’s 2023 earnings have increased 12.7%. The stock has gained 19.4% in the past six months.
Axon Enterprise AXON sports a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 44.4%, on average.
In the past 60 days, estimates for Axon’s 2023 earnings have increased 13%. The stock has rallied 4.9% in the past six months.
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