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MSC Industrial hikes dividend to more than double its peers, S&P 500

Tomi Kilgore

MSC Industrial Direct Co. reported on Wednesday disappointing fiscal third-quarter results and provided a downbeat outlook, but also raised its quarterly dividend to lift the implied yield to more than double that of both the industrial sector and the S&P 500. The dividend was raised to 75 cents a share from 63 cents a share, with the new dividend payable Aug. 6 to shareholders of record on July 23. Based on the Tuesday's stock closing price of $72.27, the new annual dividend rate implies a dividend yield of 4.15%. In comparison, the implied yield for the SPDR Industrial Select Sector ETF is 2.01% and for the S&P 500 is 1.93%. The stock, which tumbled 9% in premarket trading, has lost 11.4% over the past three months while the industrial ETF has gained 1.4% and the S&P 500 has tacked on 3.2%.