Pentair announces 49th consecutive annual dividend increase

Published 24/02/2025, 22:54
Pentair announces 49th consecutive annual dividend increase

LONDON - Pentair plc (NYSE: NYSE:PNR), a company specializing in water treatment solutions, has declared a regular quarterly cash dividend of $0.25 per share, scheduled for distribution on May 2, 2025, to shareholders on record as of April 18, 2025. According to InvestingPro data, while the company has maintained dividend payments for 50 consecutive years, it has raised its dividend for 5 consecutive years, with an 8.7% dividend growth in the last twelve months.

Pentair, a member of the S&P 500 index, generated revenue of approximately $4.1 billion in 2024 and employs around 9,750 people globally. The company operates in over 150 countries, focusing on delivering sustainable water management solutions across residential, commercial, and industrial sectors.

The announcement of the dividend increase underscores Pentair’s financial stability and its ability to maintain a steady stream of income for its shareholders. This consistent performance is particularly noteworthy as it demonstrates the company’s resilience and strategic management in a dynamic economic environment. InvestingPro data reveals the company achieved a robust return on equity of 18% and maintains healthy profit margins, though 13 analysts have recently revised their earnings expectations downward for the upcoming period.

Investors may view this regular increase in dividends as a positive indicator of Pentair’s operational efficiency and its confidence in maintaining profitability. The company has demonstrated strong market performance with a 22.4% total return over the past year, while maintaining relatively low price volatility. With a track record that spans nearly half a century, the company has established itself as a reliable entity in the water solutions industry. For detailed insights and additional metrics, investors can access the comprehensive Pro Research Report available on InvestingPro.

The information for this report is based on a press release statement from Pentair plc.

In other recent news, Pentair reported fourth-quarter earnings per share of $1.08, surpassing the consensus estimate of $1.02, although revenue for the quarter was down 1.2% year-over-year at $973 million. For the full year 2024, Pentair’s sales reached $4.1 billion, a slight decrease of 0.5% compared to the previous year, with adjusted earnings per share at $4.33. The company has provided guidance for 2025 with an expected full-year adjusted earnings per share in the range of $4.65 to $4.80, which falls below the consensus analyst estimate of $4.83. Pentair anticipates that its sales for 2025 will remain relatively flat or see a modest increase of up to 2%.

In analyst updates, JPMorgan adjusted Pentair’s stock price target from $110 to $106, maintaining a Neutral rating, citing concerns about revenue declines despite an improved margin outlook. CFRA also maintained a Hold rating on Pentair with a price target of $105, highlighting the company’s efforts in business diversification and stable earnings. Despite these efforts, Pentair’s guidance for the coming year has disappointed some analysts, with expectations of a 3% to 4% decline in first-quarter 2025 sales compared to the same period in 2024. Nonetheless, Pentair continues to emphasize profitability, with significant margin growth reported across its portfolio. The company also announced a 9% increase in its dividend for 2025, marking its 49th consecutive year of dividend increases.

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