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Allegion (ALLE) Board Approves 14% Hike in Quarterly Dividend

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Allegion plc ALLE announced a 14% hike in the quarterly dividend rate. The improved rewards to shareholders reflect a strong cash position and belief in profitability.

This is the 8th consecutive year of a dividend increment announcement made by Allegion.

Yesterday, the company’s shares gained 2.70%, ending the trading session at $119.25.

Inside the Headlines

As noted, Allegion’s board of directors approved a hike of 5 cents per share in the quarterly dividend rate, which now stands at 41 cents per share. The previous quarterly dividend rate was 36 cents. On an annualized basis, the dividend rate has been improved from $1.44 to $1.64.

The company will pay out the revised quarterly dividend on Mar 31, 2022, to shareholders of record as of Mar 16.

Sound Capital-Allocation Strategies

Allegion follows sound capital-allocation strategies. Its free resources are primarily used for product development, rewarding shareholders handsomely through dividend payments and share buybacks, and expanding end-market presence.

In the first nine months of 2021, the company paid out dividends totaling $96.9 million, up 9.7% from the year-ago comparable period. On a quarterly basis, the company paid out 36 cents per share for each quarter of 2021. The last payment was made on Dec 30, 2021.

The company bought back shares worth $212.7 million in 2021, reflecting year-over-year growth of 126%.

Zacks Rank, Price Performance and Estimate Trend

With a market capitalization of $10.7 billion, Allegion currently carries a Zacks Rank #3 (Hold). The company is poised to benefit from pricing actions, buyouts, and strength in the non-residential market. High costs and debts might be worrisome.

In the past three months, Allegion’s shares have lost 9.7% compared with the industry’s decline of 14.9%.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for the company’s earnings is pegged at $1.00 for the fourth quarter of 2021 and $5.08 for 2021. It is slated to release fourth-quarter results on Feb 15, before market open. The consensus estimate for 2022 declined 0.2% to $5.86 in the past 60 days.

Allegion PLC Price and Consensus

Allegion PLC Price and Consensus
Allegion PLC Price and Consensus

Allegion PLC price-consensus-chart | Allegion PLC Quote

Dividend Hikes by Three Players in the Sector

Below we discussed three companies belonging to the Zacks Industrial Products sector, which reward its shareholders with hiked quarterly dividend rates.

Worthington Industries, Inc. WOR hiked its quarterly dividend rate by 12% or 3 cents per share to 28 cents in March 2021. Dividends totaling $29.3 million were paid out in the first half of fiscal 2022 (ended November 2021).

Worthington presently carries a Zacks Rank #3 (Hold). WOR’s earnings estimates improved 9.1% for fiscal 2022 (ending May 2022) and decreased 15.2% for fiscal 2023 (ending May 2023) in the past 60 days.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Roper Technologies, Inc. ROP increased its quarterly dividend rate by 10% in November 2021. The total dividend disbursements were $236.4 million in 2021.

Roper’s earnings estimates have decreased 0.7% for 2022 and increased 1.9% for 2023 in the past 60 days. ROP presently carries a Zacks Rank #3.

Stanley Black & Decker, Inc. SWK hiked its quarterly dividend rate by 13% or 9 cents per share in July 2021. In 2021, SWK’s dividend payments totaled $474.8 million, up 10% year over year.

Stanley Black presently carries a Zacks Rank #3. In the past 60 days, earnings estimates for the company have been increased by 2.4% for 2022 and 2.7% for 2023.


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Worthington Industries, Inc. (WOR) : Free Stock Analysis Report

Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report

Roper Technologies, Inc. (ROP) : Free Stock Analysis Report

Allegion PLC (ALLE) : Free Stock Analysis Report

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