Danaher Rewards Shareholders With 18.5% Dividend Increase

In a shareholder-friendly move, Danaher Corporation DHR has announced a hike in its dividend payout. The company increased its quarterly dividend by 18.5% to 32 cents per share (annually: $1.28). The new dividend will be paid out on April 25, 2025, to shareholders of record as of March 28, 2025.The move underscores DHR’s sound financial health as it utilizes free cash flow to enhance its shareholders’ returns. Prior to this, Danaher had hiked its dividend by 8% to 27 cents per share in February 2024.Strong cash flows allow Danaher to effectively deploy capital for making acquisitions, repurchasing shares and paying out dividends. The company’s adjusted free cash flow totaled $5.3 billion in 2024, reflecting an increase of 3.5% year over year. Dividend payments totaled $768 million in 2024 and $821 million in 2023.The company also bought back 28 million of its common stock for $7 billion in 2024. We believe such disbursements highlight its operational strength and commitment to enhancing shareholders’ wealth.DHR Zacks Rank & Stock Price PerformanceDHR, with a $150.3 billion market capitalization, currently carries a Zacks Rank #4 (Sell). Despite recovery, sluggish demand across the pharma and biotech markets in China has been weighing on Danaher’s Instrument businesses under the Life Sciences segment.The company has been witnessing a sales decline in mass spectrometry, flow cytometry & lab automation solutions and microscopy businesses due to soft demand for equipment in major end-markets. For the first quarter of 2025, Danaher anticipates core revenues from the Life Sciences segment to decline in mid-single-digits on a year-over-year basis.DHR Stock Price PerformanceImage Source: Zacks Investment ResearchIn the past six months, the company’s shares have lost 23.1% compared with the medical services industry’s 14.3% decline.The Zacks Consensus Estimate for its 2025 earnings is pegged at $7.63 per share, down 7.3% from the 30-day-ago figure.Other Stocks to ConsiderSome better-ranked stocks from the same space are discussed below.Premier, Inc. PINC presently sports a Zacks Rank #1 (Strong Buy). It surpassed estimates thrice and missed once in the trailing four quarters, delivering an average earnings surprise of 20.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for PINC’s fiscal 2025 (ending June 2025) earnings has inched down 0.8% in the past 30 days.HealthEquity, Inc. HQY presently carries a Zacks Rank #2 (Buy). It surpassed estimates in each of the trailing four quarters, delivering an average earnings surprise of 16.6%.In the past 60 days, the Zacks Consensus Estimate for HQY’s fiscal 2025 (ending January 2025) earnings has remained stable.Cencora, Inc. COR currently carries a Zacks Rank of 2. COR surpassed estimates in each of the trailing four quarters, delivering an average earnings surprise of 4.9%.In the past 30 days, the Zacks Consensus Estimate for its fiscal 2025 (ending September 2025) earnings has increased 2%.Just Released: Zacks Top 10 Stocks for 2025Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See New Top 10 Stocks >>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 Danaher Corporation (DHR): Free Stock Analysis Report Cencora, Inc. (COR): Free Stock Analysis Report Premier, Inc. (PINC): Free Stock Analysis Report HealthEquity, Inc. (HQY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks