Kennametal (KMT) Declares $0.20 Dividend

Kennametal said on August 1, 2023 that its board of directors declared a regular quarterly dividend of $0.20 per share ($0.80 annualized). Previously, the company paid $0.20 per share.

Shareholders of record as of August 8, 2023 will receive the payment on August 22, 2023.

At the current share price of $27.48 / share, the stock's dividend yield is 2.91%.

Looking back five years and taking a sample every week, the average dividend yield has been 2.56%, the lowest has been 1.79%, and the highest has been 5.27%. The standard deviation of yields is 0.53 (n=235).

The current dividend yield is 0.67 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.54. 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.

What is the Fund Sentiment?

There are 518 funds or institutions reporting positions in Kennametal. This is an increase of 19 owner(s) or 3.81% in the last quarter. Average portfolio weight of all funds dedicated to KMT is 0.14%, an increase of 13.20%. Total shares owned by institutions increased in the last three months by 2.13% to 102,850K shares. The put/call ratio of KMT is 0.10, indicating a bullish outlook.

Analyst Price Forecast Suggests 7.64% Upside

As of August 2, 2023, the average one-year price target for Kennametal is 29.58. The forecasts range from a low of 26.26 to a high of $36.75. The average price target represents an increase of 7.64% from its latest reported closing price of 27.48.

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

The projected annual revenue for Kennametal is 2,101MM, an increase of 1.10%. The projected annual non-GAAP EPS is 1.75.

What are Other Shareholders Doing?

Ariel Investments holds 10,188K shares representing 12.69% ownership of the company. In it's prior filing, the firm reported owning 10,362K shares, representing a decrease of 1.71%. The firm increased its portfolio allocation in KMT by 4.53% over the last quarter.

Wellington Management Group Llp holds 6,109K shares representing 7.61% ownership of the company. In it's prior filing, the firm reported owning 6,665K shares, representing a decrease of 9.10%. The firm decreased its portfolio allocation in KMT by 85.34% over the last quarter.

IJR - iShares Core S&P Small-Cap ETF holds 5,874K shares representing 7.32% ownership of the company.

Burgundy Asset Management holds 4,494K shares representing 5.60% ownership of the company. In it's prior filing, the firm reported owning 4,491K shares, representing an increase of 0.08%. The firm increased its portfolio allocation in KMT by 9.72% over the last quarter.

Tinicum holds 3,394K shares representing 4.23% ownership of the company. No change in 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.

Additional reading:

• Kennametal Reports Fiscal 2023 and Fourth Quarter Results
• Kennametal Announces Fiscal 2023 Third Quarter Results
• Kennametal Announces Fiscal 2023 Second Quarter Results
• Kennametal Names Paul Sternlieb to Board of Directors
• Kennametal Announces Fiscal 2023 First Quarter Results

This story originally appeared on Fintel.