Kadant Rewards Shareholders With 6.3% Dividend Increase

In a shareholder-friendly move, Kadant Inc. KAI recently raised its quarterly dividend by 6.3% to 34 cents per share (annually: $1.36). The new dividend will be paid out on May 7, 2025, to shareholders of record as of April 9.The latest dividend hike underscores Kadant’s sound financial health as it utilizes free cash flow to enhance shareholders’ returns.In fiscal 2024, KAI rewarded shareholders with $14.7 million in dividends. In 2023, the company paid dividends worth $13.2 million. In May 2024, Kadant announced that the board of directors approved share repurchase of up to $50.0 million during the period from May 16, 2024, to May 16, 2025.  It’s worth noting that in 2024, KAI generated an adjusted free cash flow of $134.3 million.KAI’s Zacks Rank & Price PerformanceKadant currently carries a Zacks Rank #3 (Hold). In the past year, the company’s shares have gained 15% against the industry’s 0.5% decline.Image Source: Zacks Investment ResearchKAI is gaining from strength in the Flow Control segment, driven by robust demand for capital equipment products in North America. Strong momentum in the fiber processing business augurs well for the company’s Industrial Processing segment.However, the rising cost of sales due to higher material costs and increasing selling and administrative expenses pose a threat to the bottom line. Given the company’s international exposure, forex woes are weighing on its top line.Stocks to ConsiderSome better-ranked companies are discussed below.RBC Bearings Incorporated RBC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.RBC delivered a trailing four-quarter average earnings surprise of 4.9%. In the past 60 days, the Zacks Consensus Estimate for RBC’s fiscal 2025 earnings has increased 1.2%.Enersys ENS presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 2.2%.In the past 60 days, the consensus estimate for ENS’ fiscal 2025 earnings has increased 7.2%.Applied Industrial Technologies AIT presently carries a Zacks Rank of 2. AIT delivered a trailing four-quarter average earnings surprise of 5.3%.In the past 60 days, the consensus estimate for AIT’s fiscal 2025 earnings has inched up 1.4%.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 RBC Bearings Incorporated (RBC): Free Stock Analysis Report Applied Industrial Technologies, Inc. (AIT): Free Stock Analysis Report Kadant Inc (KAI): Free Stock Analysis Report Enersys (ENS): 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