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Franklin Electric (FELE) Hikes Quarterly Dividend Rate by 11%

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·3-min read
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Franklin Electric Co., Inc. FELE recently announced an 11% hike in the quarterly dividend rate. This marks its 30th consecutive year of dividend rate increase.

We believe that such shareholder-friendly policies of the company reflect a strong cash position.

Inside the Headlines

As revealed, Franklin Electric’s board of directors approved a hike of 2 cents per share in the quarterly dividend rate. It now stands at 19.5 cents per share, higher than the previous rate of 17.5 cents. On an annualized basis, the dividend rate has been raised from 70 cents to 78 cents.

Franklin Electric will pay out the revised amount on Feb 17, 2022, to shareholders on record as of Feb 3.

Sound Shareholder-Friendly Policies

Franklin Electric believes in rewarding shareholders handsomely through dividend payments. The company’s cash dividend increased from 58 cents per share in 2019 to 70 cents in 2021. In January 2021, it had raised the quarterly dividend rate by about 13%.

The company paid out a dividend of $24.5 million in cash to its shareholders in the first nine months of 2021, up 13.4% from $21.6 million disbursed in the year-ago period. On a quarterly basis, FELE paid 17.5 cents per share for each quarter of 2021. The last payment was made on Nov 18, 2021.

In addition to dividends, Franklin Electric rewarded shareholders through share buybacks worth $21.1 million in the first three quarters of 2021. Shares worth $19.1 million were repurchased in the year-ago period.

In the quarters ahead, the company is poised to benefit from its strong product offerings, solid end-market demand across all regions and product categories, acquired assets as well as shareholder-friendly policies.

Dividend Hikes by Three Industry Players

Below we have discussed three other companies from the Zacks Manufacturing - Electronics industry that reward their shareholders with hiked quarterly dividend rates.

A. O. Smith Corporation AOS hiked its quarterly dividend rate by 8% in October 2021. Dividends totaling $125.4 million were paid out in the first nine months of 2021.

AOS’ earnings surprise in the last reported quarter was 22.39%.

Emerson Electric Co. EMR hiked its quarterly dividend rate by 2% in November 2021. Dividends totaling $1,210 million were paid out in fiscal 2021 (ended September 2021).

EMR’s earnings surprise for the last reported quarter was 1.68%.

Eaton Corporation plc ETN hiked its quarterly dividend rate by 4% in February 2021. Dividends totaling $916 million were paid out in the first nine months of 2021.

ETN’s earnings surprise for the last reported quarter was 1.16%.


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Emerson Electric Co. (EMR) : Free Stock Analysis Report
 
Eaton Corporation, PLC (ETN) : Free Stock Analysis Report
 
A. O. Smith Corporation (AOS) : Free Stock Analysis Report
 
Franklin Electric Co., Inc. (FELE) : Free Stock Analysis Report
 
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