Graco raises quarterly dividend by 7.8%

Published 06/12/2024, 20:06
Graco raises quarterly dividend by 7.8%

MINNEAPOLIS - Graco Inc . (NYSE:GGG), a prominent fluid and coatings management technology provider with a market capitalization of $15.1 billion, has announced an increase in its regular quarterly dividend. The company's Board of Directors declared a dividend of 27.5 cents ($0.275) per common share, marking a 7.8 percent rise. This dividend is scheduled to be paid on February 5, 2025, to shareholders who are on record as of the close of business on January 20, 2025. According to InvestingPro data, Graco has maintained dividend payments for 54 consecutive years and raised them for 19 straight years.

The dividend increase reflects Graco's continued financial health and commitment to returning value to its shareholders. The company maintains impressive gross profit margins of 53.6% and holds more cash than debt on its balance sheet. With around 169.3 million shares outstanding, the dividend payout will represent a significant distribution of funds to the company's investors. InvestingPro analysis reveals 12 additional key insights about Graco's financial strength and market position.

Graco Inc., headquartered in Minneapolis, specializes in the design, manufacture, and marketing of equipment and systems to manage fluids and powder materials. Their products are essential in various industries, including manufacturing, processing, construction, and maintenance, with a global customer base.

The company's expertise in fluid management technology positions it as a key player in its field, providing innovative solutions that enhance efficiency and productivity for its clients. Graco's dedication to its shareholders is evident in its consistent dividend payments and the current increase, signaling confidence in its business operations and future prospects.

This announcement is based on a press release statement from Graco Inc. and does not include any promotional content or subjective assessment of the company's market position.

In other recent news, Graco Inc. has amended its credit agreement, extending the maturity of its $750 million credit facility from March 2026 to October 2029. This move, involving U.S. Bank National Association and other lenders, is expected to provide Graco with increased financial flexibility. Meanwhile, the company reported a decrease in sales and adjusted net earnings in the third quarter, with figures coming in at $519 million and $122 million respectively. Goldman Sachs maintained its Neutral stance on Graco, following these results.

Despite the downturn, Graco noted a 50 basis point increase in gross margins for the quarter, reflecting the success of its pricing strategy. The company also announced a restructuring into four business divisions aimed at improving growth and efficiency. Furthermore, acquisitions of PCT Systems and Corob are anticipated to enhance annual revenues by approximately $130 million. Despite mixed results, Graco has maintained its full-year 2024 organic growth guidance at a low single-digit decline. These are the recent developments for Graco Inc.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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