Industrial goods manufacturer
) recently announced a 21.7% year-over-year hike in its dividend
payout to 28 cents or $1.12 per share on an annualized basis. The
increased cash dividend is payable on April 30 to shareholders of
record as of April 21.
Based on the closing price of $71.07 on Apr 8, 2014, the proposed
dividend affirms a yield of 1.6% and marks the 78th consecutive
quarterly cash dividend payment by the company. A steady dividend
payout is part of the long-term strategy of IDEX to provide
attractive risk-adjusted returns to its stockholders. In
addition, decent dividend increases at periodic intervals have
been one of the company's most attractive features.
IDEX had earlier raised the quarterly dividend payout from 20
cents to 23 cents per share or from 80 cents to 92 cents on an
annualized basis in April 2013. Prior to that, IDEX raised its
quarterly dividend in April 2012 from 17 cents to 20 cents per
share or from 68 cents to 80 cents on an annualized basis. IDEX
had also raised its quarterly dividend in April 2011 from 15
cents to 17 cents per share and in April 2010 from 12 cents to 15
cents per share.
The recent dividend hike comes on the heels of strong quarterly
and annual results, with adjusted earnings well above the Zacks
Consensus Estimate. The superior performance was primarily
attributable to high productivity and stringent cost-cutting
measures. IDEX also has a share repurchase program in place,
under which it repurchased 2.9 million shares for $166 million in
2013. Over the years, IDEX has consistently returned significant
cash to its shareholders through dividends and share repurchases.
IDEX manufactures a wide array of pumps, flow meters and other
fluidics systems and components and engineered products for
customers in different markets around the world. The company is a
world leader in fluid-handling technologies for positive
displacement pumps, dispensing equipment for color formulation,
and other highly engineered products, including fire suppression
equipment, rescue tools, and stainless steel custom banding.
IDEX presently has a Zacks Rank #2 (Buy). Other companies in the
industry with a comparable rank include
Altra Holdings, Inc.
Illinois Tool Works Inc.
ALTRA HOLDINGS (AIMC): Free Stock Analysis
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IDEX CORP (IEX): Free Stock Analysis Report
ILL TOOL WORKS (ITW): Free Stock Analysis
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