Barnes Group Hikes Quarterly Dividend by 9%, Shares Gain - Analyst Blog

Barnes Group Inc. ( B ), pursuant with its capital allocation strategy, recently announced a 9% increase in its quarterly cash dividend rate. The news, announced on Oct 17, has lifted the company's share price by 2.3%.

As approved by Barnes Group's board of directors, the quarterly dividend rate presently stands at 12 cents per share, up from the previous rate of 11 cents per share. The revised annualized dividend rate is now 48 cents, increasing from the earlier 44 cents.

Barnes Group will be disbursing the revised quarterly dividend on Dec 10, 2014 to shareholders of record as on Nov 26.

The company follows a consistent policy of rewarding its shareholders handsomely through dividend payments and share buybacks, having distributed approximately $22.4 million and $68.6 million, respectively, in 2013. The company's shareholder-friendly capital allocation strategy indicates a healthy cash position. Barnes Group had cash and cash equivalents of $62.2 million at the end of second-quarter 2014.

On the same day, Barnes Group also issued $100 million worth of 3.97% Senior Notes due 2024, to a selected group of investors. The interest on these unsecured debts instruments will be paid semi-annually on Apr 17 and Oct 17. Exiting second-quarter 2014, the company had long-term debts of $501.9 million.

The company is slated to release third-quarter 2014 results on Oct 24 before the market opens. The Zacks Consensus Estimate for the quarter is pegged at 58 cents while that for 2014 and 2015 stand at $2.28 and $2.52, respectively.

Barnes Group is a well-known industrial equipment and components manufacturer. The company, with a $1.8 billion market capitalization, currently carries a Zacks Rank #2 (Buy).

Some other stocks worth considering in the industry include AO Smith Corp. ( AOS ), Manitex International, Inc. ( MNTX ) and Nordson Corp. ( NDSN ). While AO Smith sports a Zacks Rank #1 (Strong Buy), both Manitex International and Nordson hold the same rank as Barnes Group.

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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.

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