EnPro Industries, Inc. NPO yesterday announced a 4% hike in the quarterly dividend rate. This marks its seventh consecutive year of dividend rate increase.
We believe that such shareholder-friendly policies of the company reflect a strong cash position.
EnPro’s shares gained 2.3% yesterday, eventually closing the trading session at $110.86.
Inside the Headlines
As revealed, EnPro’s board of directors approved a hike of 1 cent per share in the quarterly dividend rate. It now stands at 28 cents per share. On an annualized basis, the dividend rate has been raised from $1.08 to $1.12.
EnPro will pay out the revised amount on Mar 16, 2022, to shareholders on record as of Mar 2.
Sound Shareholder-Friendly Policies
EnPro believes in rewarding shareholders handsomely through dividend payments. The company’s cash dividend payout increased from $1.00 per share in 2019 to $1.08 in 2021. In February 2021, it had raised the quarterly dividend rate by 4% as well.
The company paid out dividends worth $16.8 million to its shareholders in the first nine months of 2021, up 3.7% on a year-over-year basis. On a quarterly basis, NPO paid a dividend of 27 cents per share in 2021. The last payment was made on Dec 15, 2021.
Zacks Rank, Price Performance and Estimate Revisions
EnPro, with approximately $2.3 billion market capitalization, currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company is poised to benefit from buyouts and divestments, solid product offerings and pricing actions. Cost inflation and supply-chain woes persist.
In the past 30 days, the Zacks Consensus Estimate for earnings has been stable for both 2022 and 2023 at $5.48 and $6.80, respectively.
Image Source: Zacks Investment Research
In the past three months, EnPro’s shares have gained 2.4% against the industry’s decline of 11.1%.
Dividend Hikes by Three Industry Players
Below we have discussed three other companies from the Zacks Industrial Products sector that reward their shareholders with hiked quarterly dividend rates.
Applied Industrial Technologies, Inc. AIT hiked its quarterly dividend rate by 3% in January 2022. Dividends totaling $25.5 million were paid out in the first six months of fiscal 2022 (ended December 2021).
Applied Industrial’s earnings estimates improved 9.4% for fiscal 2022 (ending June 2022) in the past 30 days. AIT’s shares have lost 5.8% in the past three months.
Kadant Inc. KAI hiked its quarterly dividend rate by 4.2% in March 2021.
Kadant’s earnings estimates remained stable for 2022 in the past 30 days. KAI’s shares have lost 8.3% in the past three months.
A. O. Smith Corporation AOS hiked its quarterly dividend rate by 8% in October 2021. Dividends totaling $170.1 million were paid out in 2021.
A. O. Smith’s earnings estimates increased 3% for 2022 in the past 30 days. AOS’ shares have lost 12.2% in the past three months.
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
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report
Kadant Inc (KAI) : Free Stock Analysis Report
EnPro Industries (NPO) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research