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Hamilton Beach Brands announces quarterly dividend

Published 21/08/2024, 21:48
HBB
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GLEN ALLEN, Va. - Hamilton Beach Brands Holding Company (NYSE:HBB) has declared a regular cash dividend of $0.115 per share on both its Class A and Class B Common Stock. The dividend will be distributed on September 13, 2024, to shareholders who are on record as of the close of business on September 3, 2024.

The company, known for its design, marketing, and distribution of a broad array of small electric household appliances, also caters to the commercial market, supplying products for restaurants, fast food chains, bars, and hotels. Its portfolio includes a variety of consumer brands such as Hamilton Beach®, Proctor Silex®, and TrueAir®, as well as commercial brands like Hamilton Beach Commercial® and Proctor Silex Commercial®.

In addition to its own brands, Hamilton Beach Brands holds licenses for Wolf Gourmet® countertop appliances, CHI® premium garment care products, and Clorox™ True HEPA air purifiers, among others. The company also has exclusive agreements to design and distribute Bartesian® cocktail makers and Numilk® plant-based milk makers.

In an effort to expand its presence in the home health market, Hamilton Beach Brands' subsidiary, Hamilton Beach Health, acquired HealthBeacon in February 2024. HealthBeacon, a strategic partner since 2021, specializes in medical technology that supports patients managing chronic conditions with injectable medications at home.

This dividend announcement is based on a press release statement from Hamilton Beach Brands Holding Company. The company's commitment to shareholder returns is reflected in this regular dividend payment, which is part of its financial strategy to deliver value to its investors.

In other recent news, Hamilton Beach Brands Holding Company (HBB) has reported a record Q2 revenue of $156.2 million, representing a 14% year-over-year increase. The company's gross profit margin has also seen a significant rise, reaching 25.9%. As part of its strategic initiatives, Hamilton Beach Brands has been focusing on the Hamilton Beach Health division, which is expected to start contributing to operating profit from 2025.

Despite a predicted contraction in the retail marketplace for small kitchen appliances in 2024, the company is forecasting above-market revenue performance. Hamilton Beach Brands has also initiated a stock repurchase program and plans to refinance its revolving credit facility, indicating a focus on increasing shareholder value.

On the downside, the company anticipates a modest operating loss for its health division in 2024 due to planned investments. However, it expects to increase free cash flow in 2025 and 2026. The company's full-year 2024 revenue is expected to grow modestly, with a significant increase in operating profit. These recent developments reflect Hamilton Beach Brands' strategic focus and commitment to sustained growth.

InvestingPro Insights

Hamilton Beach Brands Holding Company (NYSE:HBB) continues to demonstrate financial resilience and shareholder value through its consistent dividend payments. The company's recent dividend declaration is underpinned by a solid track record of financial performance. According to InvestingPro data, Hamilton Beach Brands has a market capitalization of $372.02 million USD and an attractive P/E ratio of 10.78, indicating that the stock may be reasonably valued relative to its earnings.

Investors looking at the company's dividend sustainability would find InvestingPro Tips particularly insightful. Hamilton Beach Brands has not only raised its dividend for 7 consecutive years, but it has also maintained dividend payments for 8 consecutive years. This consistency in rewarding shareholders is supported by the company's ability to generate sufficient cash flows to cover interest payments, showcasing a stable financial condition.

On the growth front, Hamilton Beach Brands has seen a revenue growth of 5.28% over the last twelve months as of Q2 2024. This growth is coupled with a notable gross profit margin of 25.81%, reflecting the company's efficiency in managing its production costs and maintaining profitability.

For investors interested in further insights and metrics, there are additional InvestingPro Tips available on Hamilton Beach Brands, offering a deeper dive into the company's financial health and market performance. These additional tips can be found at https://www.investing.com/pro/HBB, enriching investors' decision-making process with comprehensive data and analysis.

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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