U.S. Markets close in 1 hr 10 mins

Brady's (BRC) Board Okays 2.4% Hike in Annual Dividend Rate

Zacks Equity Research

Brady Corporation BRC announced rewards for its shareholders in the form of a hike in the annual dividend rate. This hike is the company’s 34th consecutive yearly increase.

The news seems to be the prime reason behind roughly 3.4% gain in its share price at the end of the trading session yesterday.

We believe that such shareholder-friendly policies of the company reflect strong cash position and belief in profitability growth.

Inside the Headlines

The security services provider’s board of directors approved approximately a 2.4% or 2 cents per share hike in the annual dividend rate, which now stands at 87 cents per share. The previous quarterly dividend rate was 85 cents. On a quarterly basis, the dividend rate has been raised from 21.25 cents to 21.75 cents.

The company will pay the resultant quarterly dividend on Oct 31, 2019, to shareholders of record as of Oct 10.

Sound Capital-Allocation Strategies

Brady follows sound capital-allocation strategies to improve shareholder value. It uses its free resources for innovation investments, working on the automation of manufacturing facilities and rewarding shareholders through dividend payments.

In the first nine months of fiscal 2019 (ended April 30), the company paid dividends of approximately $33.5 million, higher than $32.1 million disbursed in the year-ago comparable period.

Zacks Rank & Brief on Brady’s Estimates

With a market capitalization of approximately $2.5 billion, Brady currently carries a Zacks Rank #3 (Hold). In the past 60 days, earnings estimates for the company have been lowered. Currently, the Zacks Consensus Estimates for its earnings stands at $2.39 for fiscal 2019 (ended July 2019, results not yet released) and $2.50 for fiscal 2020 (ending July 2020), reflecting declines of 0.4% and 0.4% from the respective 60-day-ago figures.

Brady Corporation Price and Consensus

 

Brady Corporation Price and Consensus

Brady Corporation price-consensus-chart | Brady Corporation Quote

Also, the company’s shares have gained 2.1% against the industry’s decline of 2.8% in the past three months.





Stocks to Consider

Some better-ranked stocks in the Zacks Industrial Products sector are Roper Technologies, Inc. ROP, DXPE Enterprises, Inc. DXPE and Dover Corporation DOV. All these stocks currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, earnings estimates for these stocks have improved for the current year. Further, average earnings surprise for the last four quarters was 6.92% for Roper, 18.06% for DXP Enterprises and 6.91% for Dover.

It’s Illegal in 42 States, But Investors Will Make Billions Legally

In addition to the companies you read about above, today you get details on the newly-legalized industry that’s tapping into a “habit” that Americans spend an estimated $150 billion on every year.

That’s twice as much as they spend on marijuana, legally or otherwise.

Zacks special report revealing how investors can profit from this new opportunity. As more states legalize this activity, the industry could expand by as much as 15X. Zacks’ has just released a Special Report revealing 5 top stocks to watch in this space.

See these 5 “sin stocks” now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Roper Technologies, Inc. (ROP) : Free Stock Analysis Report
 
Dover Corporation (DOV) : Free Stock Analysis Report
 
DXP Enterprises, Inc. (DXPE) : Free Stock Analysis Report
 
Brady Corporation (BRC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research