Graco Rewards Shareholders With 7.8% Quarterly Dividend Hike

In a shareholder-friendly move, Graco Inc. GGG announced a 7.8% hike in its dividend payout. The move underscores the company’s sound financial health as it utilizes free cash flow to enhance shareholders’ returns. Graco raised its quarterly cash dividend to 27.5 cents per share ($1.10 annually) from 25.5 cents. The new dividend will be paid to shareholders on Feb. 5, 2025, of record as of Jan. 20, 2025. Before this, it had hiked its quarterly dividend by 8.5% to 25.5 cents per share in December 2023.Strong cash flow generation capacity supports GGG’s shareholder-friendly activities. It generated net cash of $436.5 million from operating activities in the first nine months of 2024. Exiting the third quarter, Graco had cash and cash equivalents of $764.5 million, higher than $538 million at the end of 2023.In the first nine months of 2024, Graco paid out dividends worth $129 million to its shareholders, reflecting an increase of 8.7% year over year. Also, it repurchased shares worth $31.4 million in the same period.Graco’s Zacks Rank & Price PerformanceImage Source: Zacks Investment ResearchGraco currently carries a Zacks Rank #4 (Sell). Shares of the company have gained 9.5% in the past three months compared with the industry‘s 15% growth.A decline in demand for the company’s semiconductor, industrial lubrication and process transfer equipment products, owing to a weakness in the industrial sector, is hampering its performance of late. For 2024, GGG expects organic revenues to decline in the low single digits from the year-ago level.The Zacks Consensus Estimate for 2024 earnings per share has decreased 3% to $2.89 in the past 60 days.Stocks to ConsiderSome better-ranked companies from the same space are discussed below.Graham Corporation GHM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.GHM delivered a trailing four-quarter average earnings surprise of 101.9%. In the past 60 days, the Zacks Consensus Estimate for Graham’s fiscal 2025 earnings has increased 8.4%.RBC Bearings Incorporated RBC presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 2.5%.In the past 60 days, the consensus estimate for RBC’s fiscal 2025 earnings has increased 0.9%.Generac Holdings GNRC presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 10.8%. The Zacks Consensus Estimate for GNRC’s 2024 earnings has increased 6.2% in the past 60 days.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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 RBC Bearings Incorporated (RBC): Free Stock Analysis Report Graco Inc. (GGG): Free Stock Analysis Report Graham Corporation (GHM): Free Stock Analysis Report Generac Holdings Inc. (GNRC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks