MILWAUKEE - Brady Corporation (NYSE:BRC), a global manufacturer and marketer of identification and protection solutions, has announced an increase in its annual dividend for shareholders of its Class A Common Stock. The Board of Directors approved the dividend hike from $0.94 to $0.96 per share on Wednesday. The company will pay a quarterly dividend of $0.24 per share on October 31, 2024, to shareholders on record as of October 10, 2024.
This increase marks the 39th consecutive year that Brady Corporation has raised its dividend, reflecting a consistent commitment to shareholder returns. The company has a long history dating back to 1914 and serves a diverse range of industries including electronics, telecommunications, manufacturing, electrical, construction, medical, and aerospace.
As of July 31, 2023, Brady Corporation employed approximately 5,600 people across its global operations. The company reported sales of around $1.33 billion for the fiscal year 2023. Brady's products, which range from high-performance labels and signs to safety devices, printing systems, and software, are designed to enhance safety, security, productivity, and performance for its customers.
The company, headquartered in Milwaukee, Wisconsin, emphasizes its role in providing solutions that identify and protect people, products, and places. Brady's stock is publicly traded on the New York Stock Exchange with the ticker symbol BRC.
This announcement is based on a press release statement from Brady Corporation. The information provided reflects the company's performance and strategic financial decisions as it continues to deliver value to its shareholders.
In other recent news, Brady Corp has been making significant strides in its business operations. The company reported record-high earnings per share (EPS) and a noticeable upswing in organic sales growth in the third quarter of fiscal year 2024. Analysts at Northcoast Research have adjusted their outlook on Brady Corp, increasing the price target to $85 from $73, while maintaining a Buy rating. This revised outlook reflects their positive view of Brady Corp's future financial performance, including its recent acquisition of Gravotech.
Brady Corp's strategic acquisition of Gravotech, a French company specializing in engraving materials and marking solutions, is expected to enrich the company's product offerings and fortify its market position. The transaction, valued at €120 million, is anticipated to close in August 2024. This acquisition aligns with Brady Corp's growth strategy and is expected to contribute to the company's financial and operational performance.
In addition to these developments, Brady Corp has demonstrated its commitment to shareholder value by offering substantial dividends and repurchasing 863,000 shares for $50.4 million. These are the latest developments in Brady Corp's ongoing efforts to drive growth and operational efficiency.
InvestingPro Insights
Brady Corporation (NYSE:BRC) has not only increased its dividend as a sign of its financial stability but also showcases a strong balance sheet according to InvestingPro data. As of the last twelve months leading up to Q3 2024, the company holds a market capitalization of approximately $3.41 billion and maintains a healthy P/E ratio of 18.33, which adjusts slightly to 17.91 when considering the trailing twelve months. These metrics underscore the company's valuation and profitability in the eyes of investors.
Moreover, Brady Corporation's commitment to shareholder returns is further supported by a solid gross profit margin of 51.1%, reflecting efficient operations and a strong market position. The company's ability to generate profit from its revenues is also evident in the gross profit figure of roughly $686.71 million for the same period. This financial health is critical for investors looking for companies with sustainable and growing dividends.
InvestingPro Tips highlight that Brady Corporation has raised its dividend for 28 consecutive years and has maintained dividend payments for an impressive 41 consecutive years. Additionally, the company's stock generally trades with low price volatility, suggesting a stable investment option for income-focused shareholders. For investors seeking more detailed analysis and tips on Brady Corporation, InvestingPro offers 11 additional tips on their platform.
The company's strong financial position is also underlined by its cash flow management. Brady Corporation's cash flows can sufficiently cover interest payments, providing a cushion for potential economic downturns. This is a key indicator of financial resilience, which is crucial for maintaining and increasing dividends over time.
As Brady Corporation looks forward to its next earnings date on September 6, 2024, analysts have revised their earnings upwards for the upcoming period, indicating potential positive momentum for the company's financial performance. With a fair value estimation by analysts at $83 and InvestingPro's fair value at $76.22, the current price of $73.19 per share is positioned closely to these assessments, suggesting that the stock may be fairly valued at present.
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