Eaton (ETN) Declares $0.86 Dividend

Eaton said on April 25, 2023 that its board of directors declared a regular quarterly dividend of $0.86 per share ($3.44 annualized). Previously, the company paid $0.86 per share.

Shares must be purchased before the ex-div date of May 5, 2023 to qualify for the dividend. Shareholders of record as of May 8, 2023 will receive the payment on May 26, 2023.

At the current share price of $161.83 / share, the stock's dividend yield is 2.13%. Looking back five years and taking a sample every week, the average dividend yield has been 2.76%, the lowest has been 1.75%, and the highest has been 5.05%. The standard deviation of yields is 0.68 (n=237).

The current dividend yield is 0.93 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.56. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.18%, demonstrating that it has increased its dividend over time.

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What is the Fund Sentiment?

There are 2435 funds or institutions reporting positions in Eaton. This is an increase of 137 owner(s) or 5.96% in the last quarter. Average portfolio weight of all funds dedicated to ETN is 0.44%, a decrease of 3.58%. Total shares owned by institutions decreased in the last three months by 1.16% to 379,498K shares. The put/call ratio of ETN is 0.58, indicating a bullish outlook.

Analyst Price Forecast Suggests 17.16% Upside

As of April 24, 2023, the average one-year price target for Eaton is 189.60. The forecasts range from a low of 146.45 to a high of $220.50. The average price target represents an increase of 17.16% from its latest reported closing price of 161.83.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Eaton is 22,101MM, an increase of 6.50%. The projected annual non-GAAP EPS is 8.33.

What are Other Shareholders Doing?

Jpmorgan Chase holds 21,380K shares representing 5.36% ownership of the company. In it's prior filing, the firm reported owning 24,318K shares, representing a decrease of 13.74%. The firm decreased its portfolio allocation in ETN by 5.01% over the last quarter.

Bank Of America holds 13,399K shares representing 3.36% ownership of the company. In it's prior filing, the firm reported owning 13,129K shares, representing an increase of 2.02%. The firm increased its portfolio allocation in ETN by 14.47% over the last quarter.

Massachusetts Financial Services holds 12,880K shares representing 3.23% ownership of the company. In it's prior filing, the firm reported owning 12,783K shares, representing an increase of 0.75%. The firm increased its portfolio allocation in ETN by 10.72% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 12,095K shares representing 3.04% ownership of the company. In it's prior filing, the firm reported owning 11,867K shares, representing an increase of 1.88%. The firm increased its portfolio allocation in ETN by 10.77% over the last quarter.

VFINX - Vanguard 500 Index Fund Investor Shares holds 9,194K shares representing 2.31% ownership of the company. In it's prior filing, the firm reported owning 9,030K shares, representing an increase of 1.78%. The firm increased its portfolio allocation in ETN by 10.39% over the last quarter.

Eaton Background Information
(This description is provided by the company.)

Eaton's mission is to improve the quality of life and the environment through the use of power management technologies and services. The Company provides sustainable solutions that help our customers effectively manage electrical, hydraulic, and mechanical power - more safely, more efficiently, and more reliably. Eaton's 2020 revenues were $17.9 billion, and it sells products to customers in more than 175 countries. The Company has approximately 92,000 employees.

This story originally appeared on Fintel.