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Ingersoll (IR) Hikes Quarterly Dividend Payout by 12.5%

Industrial goods manufacturer Ingersoll-Rand Plc IR recently announced a 12.5% year-over-year hike in its quarterly dividend to 45 cents per share or $1.80 on an annualized basis. The increased dividend will be paid on Sep 29 to shareholders on record as of Sep 8.

Ingersoll has been paying uninterrupted quarterly cash dividends since 1919 and annual dividends since 1910. A steady dividend payout is part of the long-term strategy of Ingersoll to provide attractive risk-adjusted returns to its stockholders. In addition, healthy dividend hikes at periodic intervals have been one of its high points.

Ingersoll continues to focus on its strategic priorities, which include a disciplined capital allocation, strong and flexible balance sheet position and cash flow enhancement to support dividend growth.  We believe that such moves along with its robust operating platform and an efficient management team will help in the execution of these strategic priorities and drive net asset value and dividend growth in the future as well.

Ingersoll is focusing on improving the efficiencies and capabilities of products and services within its core businesses after the divesture of the commercial and residential security businesses. Strategic acquisitions served as growth drivers, supplementing the company’s organic growth. Furthermore, Ingersoll is likely to achieve steady improvements in operating profitability with new product developments, investments in IT platform and enhancement of channel services footprint and product management capabilities.

Ingersoll has a solid foundation of global brands and a leading market share in all major product lines. The geographic and industrial diversity coupled with a large installed product base provides ample growth opportunities within service, spare parts and replacement revenue streams. Additionally, the company’s complementary portfolio of products and services is likely to assist it in strengthening its market position and achieving high productivity to better compete with rivals like Altra Industrial Motion Corp. AIMC, Kadant Inc. KAI and Barnes Group Inc. B.

For full-year 2017, management reaffirmed its earlier bullish guidance. The company anticipates organic revenues to improve 3% while reported revenues are expected to be up 2% year over year. Ingersoll expects adjusted earnings from continuing operations to be in the range of $4.30 to $4.50 per share. Cash from operating activities is anticipated to be about $1.4 billion while free cash flow is expected to be within $1.1 billion to $1.2 billion. Such bullish outlook portrays favorable growth dynamics and boosts investor confidence.

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Ingersoll-Rand PLC (Ireland) (IR): Free Stock Analysis Report
 
Barnes Group, Inc. (B): Free Stock Analysis Report
 
Kadant Inc (KAI): Free Stock Analysis Report
 
Altra Industrial Motion Corp. (AIMC): Free Stock Analysis Report
 
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