Allegion raises dividend for 11th consecutive year

DUBLIN - Allegion plc (NYSE:ALLE), a prominent player in the global security products and solutions sector, has announced a 6% increase in its quarterly dividend, marking the company’s 11th consecutive year of dividend growth. The increased dividend of $0.51 per ordinary share, representing a 1.49% yield, is scheduled for payment on March 31, 2025, to shareholders who are on record as of March 14, 2025. According to InvestingPro data, this consistent dividend growth is one of several positive indicators, with 9 more exclusive ProTips available to subscribers.

The company’s steady performance is reflected in the consistent rise of its dividend payout, showcasing Allegion’s commitment to delivering value to its shareholders. This financial decision follows Allegion’s reported revenue of $3.7 billion in 2023, with a healthy gross profit margin of 44% and return on equity of 41%. InvestingPro’s comprehensive analysis indicates a "GOOD" overall financial health score, suggesting solid operational efficiency. For detailed insights, investors can access the full Pro Research Report, part of InvestingPro’s coverage of 1,400+ US equities.

Allegion is widely recognized for its comprehensive suite of security solutions, which include well-known brands such as CISA®, Interflex®, LCN®, Schlage®, SimonsVoss®, and Von Duprin®. These brands collectively contribute to the company’s mission to ensure seamless access and security for a diverse clientele ranging from residential to institutional settings.

The company’s global footprint is extensive, with its products being sold internationally, catering to the need for enhanced security in homes, businesses, schools, and various other institutions. This dividend increase is a testament to Allegion’s robust financial health and its ability to maintain a growth trajectory in the competitive security products market.

Investors and shareholders of Allegion can view this development as a positive indicator of the company’s financial strategies and its ability to sustain growth and shareholder returns year after year. This news is based on a press release statement issued by Allegion plc.

In other recent news, Allegion has been making strategic moves to bolster its market position. The security solutions provider recently acquired Next (LON:NXT) Door Company, a Miami-based manufacturer known for its custom stainless steel and hollow metal doors. The acquisition is expected to broaden Allegion’s product offerings and enhance its manufacturing and distribution capabilities across the United States. Justin Schechter, the owner of Next Door, will join Allegion to support the combined businesses’ accelerated growth.

On the other hand, Morgan Stanley (NYSE:MS) initiated coverage on Allegion shares with an Equalweight rating, indicating potential challenges ahead due to the company’s positioning in the industrial market. The firm’s analysis suggests that Allegion may face pressure in its current market focus, including Multi-Family and Commercial verticals, while it has limited exposure to more favorable construction segments.

In addition to these developments, Allegion has expanded its board with the appointment of Gregg Sengstack, the executive chairperson of Franklin Electric (NASDAQ:FELE) Company, Inc. Sengstack, with his extensive experience in international markets and financial management, is expected to contribute significantly to Allegion’s corporate governance. These are the recent developments that investors may want to consider.

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