Briggs & Stratton Corporation
) touched a new 52-week high on December 19, and have registered a
37.5% return year to date. The Zacks #2 Rank (Buy) industrial goods
maker recently announced a 9% hike in its quarterly dividend rate
and has a solid 5-year average dividend yield of 3.5%.
In August, the company revised its quarterly dividend to 12 cents
from 11 cents, representing an increase of 9%. The stock currently
yields a solid 2.3% based on an annual dividend rate of 48 cents
Apart from dividends, the company recently acquired Companhia
Caetano Branco, a leading brand in the Brazilian light power
equipment market for $57 million in cash. Also, the company opened
a new wholly owned subsidiary in Kuala Lumpur, Malaysia. The new
entity will enable the company to tap the potential market in the
Earnings Estimates Moving Higher
Considering the last 60 days, the Zacks Consensus Estimate for
fiscal 2013 (ending June 2013) has advanced 4.5% to $1.38. The
Zacks Consensus Estimate for fiscal year 2014 gained 0.4% to $1.66.
These estimates represent year-over-year growth of 20.2% for 2013
and 19.8% for 2014.
Briggs & Stratton Corporation is currently trading at a forward
P/E of 15.4x, compared with 12.1x for the peer group. The company's
ROE stands at 7.4%.
In the past twelve months, the company's stock climbed to $21.00
per share from $16.00. Moreover, considering the rising Zacks
Consensus Estimate, the stock's outlook seems bright in the years
The solid dividend yield and expansion through meaningful
acquisitions bode well for the stock and make it an attractive
Briggs & Stratton Corporation is one of the leading
manufacturers and sellers of cooled gasoline engines, designed
especially for outdoor power equipment. Currently, the company has
a market capitalization of $1.0 billion.
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