Kennametal (KMT) Declares $0.20 Dividend

Kennametal said on February 6, 2023 that its board of directors declared a regular quarterly dividend of $0.20 per share ($0.80 annualized). Shareholders of record as of February 13, 2023 will receive the payment on February 28, 2023. Previously, the company paid $0.20 per share.

At the current share price of $28.41 / share, the stock's dividend yield is 2.82%. Looking back five years and taking a sample every week, the average dividend yield has been 2.48%, the lowest has been 1.78%, and the highest has been 5.27%. The standard deviation of yields is 0.53 (n=235).

The current dividend yield is 0.63 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.51. 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 has not increased its dividend in the last three years.

Analyst Price Forecast Suggests 4.86% Downside

As of February 12, 2023, the average one-year price target for Kennametal is $27.03. The forecasts range from a low of $19.19 to a high of $36.75. The average price target represents a decrease of 4.86% from its latest reported closing price of $28.41.

The projected annual revenue for Kennametal is $2,052MM, an increase of 0.88%. The projected annual EPS is $1.50, a decrease of 3.16%.

What is the Fund Sentiment?

There are 529 funds or institutions reporting positions in Kennametal. This is a decrease of 23 owner(s) or 4.17% in the last quarter. Average portfolio weight of all funds dedicated to KMT is 0.13%, an increase of 1.32%. Total shares owned by institutions increased in the last three months by 0.14% to 103,933K shares. The put/call ratio of KMT is 0.23, indicating a bullish outlook.

What are large shareholders doing?

Ariel Investments holds 10,622K shares representing 13.18% ownership of the company. In it's prior filing, the firm reported owning 10,600K shares, representing an increase of 0.20%. The firm decreased its portfolio allocation in KMT by 4.29% over the last quarter.

Wellington Management Group Llp holds 5,684K shares representing 7.05% ownership of the company. In it's prior filing, the firm reported owning 5,833K shares, representing a decrease of 2.61%. The firm decreased its portfolio allocation in KMT by 8.69% over the last quarter.

Burgundy Asset Management holds 4,491K shares representing 5.57% ownership of the company. In it's prior filing, the firm reported owning 4,525K shares, representing a decrease of 0.78%. The firm increased its portfolio allocation in KMT by 7.57% over the last quarter.

Tinicum holds 3,394K shares representing 4.21% ownership of the company. No change in the last quarter.

Victory Capital Management holds 3,247K shares representing 4.03% ownership of the company. In it's prior filing, the firm reported owning 2,950K shares, representing an increase of 9.16%. The firm decreased its portfolio allocation in KMT by 23.94% over the last quarter.

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

With over 80 years as an industrial technology leader, Kennametal Inc. delivers productivity to customers through materials science, tooling and wear-resistant solutions. Customers across aerospace, earthworks, energy, general engineering and transportation turn to Kennametal to help them manufacture with precision and efficiency. Every day approximately 9,000 employees are helping customers in more than 60 countries stay competitive. Kennametal generated nearly $1.9 billion in revenues in fiscal 2020.

This story originally appeared on Fintel.