Andersons Hikes Dividend - Analyst Blog

The Andersons, Inc. ( ANDE ) upped its quarterly dividend by 4 cents to 15 cents to bolster shareholder value. The dividend hike translates to a 36% increase from the prior dividend of 11 cents. The increased dividend will be paid on January 24, 2012, to stockholders of record on January 3, 2012.

Since its first year of trading on the NASDAQ in 1996, the company has consistently paid cash dividends for 61 straight quarters. The current dividend hike comes exactly after a year. The last dividend hike of 2 cents or 22% to 11 cents was announced on December 17, 2010.

Andersons had started off paying a dividend of 3 cents in 1996, which has now increased fivefold to the current level of 15 cents. The most substantial increase came in 2007 when the company had pulled up its dividend by 63% to 7.75 cents. Following that feat, the current dividend hike of 36% is the highest.

Andersonhas approximately 18.5 million common shares outstanding. The quarterly dividend payout will be to the tune of $2.8 million approximately.

During the third quarter, Andersons reported EPS of 59 cents, a substantial improvement over the 8 cents reported in the year-ago quarter and way ahead of the Zacks Consensus Estimate of 17 cents. The outperformance was led by the Grain & Ethanol and Plant Nutrient Groups.

Cash and cash equivalents increased to $38.5 million as of September 30, 2011 from $18.6 million as of June 30, 2011. Long-term debt stood at $235.7 million as of September 30, 2011 compared with $260.6 million as of June 30, 2011.

Based in Maumee, Ohio, The Andersons, which has a Zacks #2 Rank (Buy rating), is a diversified company operating in five differentbusiness segments ranging from buying, selling and storing grain to leasing railcars and running retail stores catering to the latest home hardware needs. The company has operations across the U.S. and in Puerto Rico, plus rail equipment leasing interests in Canada and Mexico

Andersons competes with Archer Daniels Midland Company ( ADM ), CHS Inc. ( CHSCP ) and privately held Cargill, Inc.

ARCHER DANIELS ( ADM ): Free Stock Analysis Report

ANDERSONS INC ( ANDE ): Free Stock Analysis Report

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More