Donaldson Company, Inc. (NYSE:DCI) to Issue Dividend Increase – $0.25 Per Share

Donaldson Company, Inc. (NYSE:DCI – Get Rating) declared a quarterly dividend on Wednesday, May 24th, Wall Street Journal reports. Stockholders of record on Wednesday, June 7th will be paid a dividend of 0.25 per share by the industrial products company on Friday, June 23rd. This represents a $1.00 dividend on an annualized basis and a dividend yield of 1.58%. The ex-dividend date is Tuesday, June 6th. This is a positive change from Donaldson’s previous quarterly dividend of $0.23.

Donaldson has raised its dividend payment by an average of 3.5% per year over the last three years and has increased its dividend every year for the last 37 years. Donaldson has a payout ratio of 31.8% meaning its dividend is sufficiently covered by earnings. Analysts expect Donaldson to earn $3.15 per share next year, which means the company should continue to be able to cover its $1.00 annual dividend with an expected future payout ratio of 31.7%.

Donaldson Stock Up 0.9 %

Shares of Donaldson stock opened at $63.37 on Friday. The firm’s 50 day moving average price is $63.50 and its 200-day moving average price is $62.11. The company has a quick ratio of 1.46, a current ratio of 2.33 and a debt-to-equity ratio of 0.52. Donaldson has a 52-week low of $46.00 and a 52-week high of $66.96. The company has a market cap of $7.69 billion, a P/E ratio of 22.00, a PEG ratio of 1.96 and a beta of 1.20.

Donaldson (NYSE:DCI – Get Rating) last issued its quarterly earnings data on Wednesday, March 8th. The industrial products company reported $0.75 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.69 by $0.06. The firm had revenue of $828.30 million for the quarter, compared to the consensus estimate of $838.29 million. Donaldson had a net margin of 10.45% and a return on equity of 32.35%. The company’s quarterly revenue was up 3.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.57 EPS. On average, sell-side analysts predict that Donaldson will post 3.05 EPS for the current fiscal year.

Insider Activity

In other news, Director James Owens sold 10,800 shares of Donaldson stock in a transaction that occurred on Thursday, March 2nd. The shares were sold at an average price of $66.08, for a total transaction of $713,664.00. Following the completion of the transaction, the director now directly owns 14,378 shares of the company’s stock, valued at approximately $950,098.24. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. In related news, Director Christopher M. Hilger purchased 3,186 shares of the business’s stock in a transaction that occurred on Tuesday, April 11th. The stock was bought at an average price of $62.76 per share, with a total value of $199,953.36. Following the acquisition, the director now owns 7,872 shares in the company, valued at $494,046.72. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director James Owens sold 10,800 shares of the business’s stock in a transaction on Thursday, March 2nd. The stock was sold at an average price of $66.08, for a total transaction of $713,664.00. Following the completion of the sale, the director now directly owns 14,378 shares of the company’s stock, valued at approximately $950,098.24. The disclosure for this sale can be found here. Insiders own 2.77% of the company’s stock.

Institutional Investors Weigh In On Donaldson

Large investors have recently modified their holdings of the business. Fred Alger Management LLC purchased a new stake in shares of Donaldson during the third quarter worth $35,000. Covestor Ltd grew its holdings in shares of Donaldson by 128.4% during the first quarter. Covestor Ltd now owns 2,417 shares of the industrial products company’s stock worth $126,000 after buying an additional 1,359 shares in the last quarter. Quantbot Technologies LP grew its holdings in shares of Donaldson by 103.7% during the first quarter. Quantbot Technologies LP now owns 2,426 shares of the industrial products company’s stock worth $125,000 after buying an additional 1,235 shares in the last quarter. Captrust Financial Advisors grew its holdings in shares of Donaldson by 31.2% during the first quarter. Captrust Financial Advisors now owns 2,618 shares of the industrial products company’s stock worth $136,000 after buying an additional 622 shares in the last quarter. Finally, Milestone Investment Advisors LLC acquired a new position in shares of Donaldson during the 1st quarter valued at about $190,000. Hedge funds and other institutional investors own 80.10% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the stock. Morgan Stanley lifted their target price on shares of Donaldson from $70.00 to $71.00 and gave the stock an “overweight” rating in a research note on Thursday, April 20th. Robert W. Baird lifted their target price on shares of Donaldson from $66.00 to $69.00 in a research note on Friday, March 3rd. Finally, StockNews.com began coverage on shares of Donaldson in a research note on Thursday, May 18th. They issued a “strong-buy” rating for the company.

Donaldson Company Profile

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Donaldson Co, Inc engages in the manufacture of filtration systems and replacement parts. It operates through the following segments: Engine Products and Industrial Products. The Engine Products segment includes replacement filters for both air and liquid filtration applications, air filtration systems, liquid filtration systems for fuel, lube and hydraulic applications, and exhaust and emissions systems.