MILWAUKEE - Badger Meter, Inc. (NYSE: NYSE:BMI), a global provider of water measurement technology, announced a 26% increase in its quarterly common stock dividend, raising it from $0.27 to $0.34 per share. The new dividend will be payable on September 6, 2024, to shareholders of record as of August 23, 2024, marking an annual dividend rate of $1.36 per share.
Kenneth C. Bockhorst, Chairman, President, and Chief Executive Officer of Badger Meter, credited the company's ability to consistently serve customers and execute its business strategy for the dividend increase. He emphasized the significance of a durable dividend as a key element of the company's capital allocation framework. Bockhorst also highlighted the company's achievement of increasing dividends for 32 consecutive years.
Badger Meter has over a century of experience in the water technology industry. The company specializes in flow measurement and water quality solutions, providing data and analytics that support the optimization of operations. These solutions contribute to the sustainable use and protection of water resources globally.
In other recent news, Badger Meter reported a striking 23% year-over-year growth in sales for the second quarter of 2024, with total sales reaching $217 million. The company also reported record operating margins and earnings per share, showcasing robust cash flow growth. Baird, an independent global financial services firm, has increased the price target for Badger Meter shares to $184.00, maintaining a neutral rating on the stock. This adjustment follows the company's strong second-quarter sales and earnings results.
InvestingPro Insights
Following the announcement of Badger Meter's (NYSE: BMI) increased quarterly dividend, a deeper look into the company's financials via InvestingPro provides further context to the decision. Badger Meter has a track record of stability and shareholder returns, as evidenced by its remarkable streak of having raised its dividend for 31 consecutive years, a testament to the company's consistent performance and prudent capital management strategies. This aligns with the company's recent dividend hike from $0.27 to $0.34 per share.
InvestingPro data indicates that Badger Meter has a market capitalization of $5.63 billion, and it trades at a high earnings multiple, with a P/E ratio of 49.72. This high valuation is reflective of investor confidence in the company's future earnings potential. Additionally, the company's revenue growth has been robust, with a growth rate of 24.0% over the last twelve months as of Q2 2024, signaling a strong market position and the effectiveness of its business strategy.
From an investment standpoint, Badger Meter's stock generally trades with low price volatility, which could appeal to investors looking for stable equity in their portfolios. This is complemented by the company's solid financial footing, where liquid assets exceed short-term obligations, indicating a healthy liquidity position. Alongside these metrics, the company's EBITDA growth of 34.89% over the same period underscores its operational efficiency and profitability.
For investors seeking more in-depth analysis and additional insights, the InvestingPro platform lists several other tips for Badger Meter, including the company's moderate level of debt and predictions of profitability for the year. To explore these further, investors can access a total of 15 additional InvestingPro Tips for Badger Meter at https://www.investing.com/pro/BMI.
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