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Watts Water Technologies sets quarterly dividend at $0.43/share

Published 10/29/2024, 04:50 AM
WTS
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NORTH ANDOVER, Mass. - Watts Water Technologies, Inc. (NYSE:WTS), a leading global manufacturer of plumbing, heating, and water quality solutions, announced today that it will pay a quarterly dividend of $0.43 per share on both its Class A and Class B Common Stock. The dividend is scheduled for payment on December 13, 2024, to shareholders of record as of the close of business on November 29, 2024.

This dividend declaration follows the company's ongoing practice of delivering returns to its shareholders and reflects its commitment to shareholder value. Watts Water Technologies has a diverse portfolio of products and brands that serve a wide range of industries, including commercial, residential, and industrial sectors.

The company's decision to maintain a stable dividend payout is based on its financial performance and strategic objectives. Watts Water Technologies has not disclosed any further details regarding its financial health or future projections in relation to this dividend payment.

Investors and stockholders are encouraged to note the record and payment dates of the upcoming dividend. The dividend yield and the payout ratio at the current stock price are not specified in the press release statement.

It is important for investors to consider the dividend announcement in the context of the overall market and sector performance, as well as any potential changes in the economic landscape that could affect future dividend payments.

This news is based on a press release statement from Watts Water Technologies, Inc. and does not include any additional analysis or data from other sources.

In other recent news, Watts Water Technologies has been making significant strides in its operations. The company has announced plans to commence discussions regarding the closure of its foundry in Hautvillers-Ouville, France, with the intention to relocate work primarily to other locations within France and Europe. This restructuring plan, subject to approval by the company's Board of Directors, is expected to bring about material charges.

In the realm of financial performance, Watts Water Technologies has surpassed Q2 expectations with record sales, adjusted operating income, and earnings per share. Despite forecasting a decline in organic sales for the third quarter, the company has maintained its annual outlook, buoyed by a robust first-half performance and the successful acquisitions of Bradley and Josam.

TD Cowen has maintained its Hold rating on Watts Water shares, acknowledging mixed performance indicators within the company's operational markets, including challenges in the European operations and the U.S. multifamily housing sector. Despite these hurdles, Watts Water's long-term financial projections remain stable, with no changes in the earnings estimates for the years 2024 and 2025.

Lastly, Watts Water is progressing with the implementation of its SAP ERP system, supporting its smart and connected strategy. The company is also focusing on new product development and potential acquisitions, demonstrating its commitment to innovation and market adaptation amidst expected declines in margins due to European market conditions. These are the recent developments in the company's journey.

InvestingPro Insights

Watts Water Technologies' commitment to shareholder value is further underscored by its impressive dividend history. According to InvestingPro Tips, the company has raised its dividend for 11 consecutive years and has maintained dividend payments for an impressive 39 consecutive years. This consistent track record aligns with the company's recent dividend declaration and demonstrates a long-term commitment to returning value to shareholders.

The company's financial health appears robust, with InvestingPro Data showing a market capitalization of $6.59 billion and a revenue of $2.22 billion for the last twelve months as of Q2 2024. The revenue growth of 11.32% over the same period indicates steady expansion, which supports the company's ability to maintain its dividend policy.

Watts Water Technologies' profitability metrics are also noteworthy. With a gross profit margin of 46.95% and an operating income margin of 17.1%, the company seems well-positioned to continue its dividend payments. The basic EPS (Continuing Operations) of $8.25 for the last twelve months as of Q2 2024 further supports this view.

Investors should note that while the company's P/E ratio of 23.94 is relatively high, this could be justified by its consistent performance and dividend growth. The dividend yield of 0.87% may seem modest, but the dividend growth rate of 19.44% over the last twelve months is impressive and aligns with the company's history of increasing dividends.

For those seeking more comprehensive insights, InvestingPro offers additional tips and data points that could provide a fuller picture of Watts Water Technologies' financial position and prospects. In fact, there are 13 additional InvestingPro Tips available for this stock, offering deeper analysis for investors looking to make informed decisions.

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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