Worthington Industries, Inc. WOR yesterday announced a reward for its shareholders in the form of an increase in the quarterly dividend payout rate. The increment marks its 10th consecutive year of a dividend rate increase.
We believe that such shareholder-friendly policies of the company reflect a strong cash position.
Inside the Headlines
As revealed, the board of directors of Worthington approved a hike of 4.2% or one cent per share in the quarterly dividend rate. The revised rate now stands at 25 cents per share. On an annualized basis, the dividend increased to $1.00 per share from the previous rate of 96 cents.
Worthington will pay out the revised dividend on Sep 29, 2020, to shareholders of record as of Sep 15.
Sound Shareholder-Friendly Policies
The company firmly believes in rewarding shareholders handsomely through dividend payments and share buybacks. Its dividend payout amounted to 92 cents per share in fiscal 2019 (ended May 2019), higher than 80 cents in fiscal 2017 (ended May 2017). Moreover, the company repurchased shares worth $168.1 million in fiscal 2019.
We believe that impressive financial performance in the quarters ahead will likely enable it to continue rewarding shareholders handsomely through dividend increments.
Zacks Rank, Earnings Estimate Trend and Price Performance
With a market capitalization of $2 billion, Worthington currently carries a Zacks Rank #3 (Hold). In the past three months, the company’s shares have gained 36.8% compared with the industry’s growth of 19%.
The Zacks Consensus Estimate for its earnings is pegged at $2.32 for fiscal 2021 (ending May 2021, reflecting a decline of 1.3% from the 60-day ago figure.
Worthington Industries, Inc. Price and Consensus
Worthington Industries, Inc. price-consensus-chart | Worthington Industries, Inc. Quote
Stocks to Consider
Three better-ranked stocks in the Zacks Industrial Products sector are Altra Industrial Motion Corp. AIMC, Applied Industrial Technologies, Inc. AIT and ParkerHannifin Corporation PH. While both Altra Industrial and Applied Industrial sport a Zacks Rank #1 (Strong Buy), ParkerHannifin carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, earnings estimates for these stocks have improved for the current year. Further, positive earnings surprise for the last reported quarter was 47.73% for Altra Industrial, 2.00% for Applied Industrial and 29.20% for ParkerHannifin.
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Worthington Industries, Inc. (WOR) : Free Stock Analysis Report
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