NORTH CANTON, Ohio - The Timken Company (NYSE: NYSE:TKR), known for its engineering bearings and industrial motion products, announced a 3% increase in its quarterly cash dividend to 34 cents per share. This decision, made by the company's board of directors today, marks the eleventh consecutive year of dividend growth. Shareholders of record as of May 14, 2024, will be eligible for the dividend payout scheduled for May 28, 2024.
Richard G. Kyle, President and CEO of Timken, expressed the board's intention to continue raising the dividend in alignment with earnings, signaling their confidence in the company's long-term strategy. Kyle attributed the increase to Timken's consistent delivery of strong financial performance.
The company's history of dividend payments dates back to its original listing on the New York Stock Exchange in 1922. With the upcoming dividend, Timken will have paid out dividends for 408 consecutive quarters, positioning it among the NYSE-listed companies with the most enduring dividend records.
Timken, which celebrated its 125th anniversary, reported sales of $4.8 billion in 2023. The company employs over 19,000 people worldwide and operates in 45 countries.
The information is based on a press release statement from The Timken Company.
InvestingPro Insights
The Timken Company's (NYSE: TKR) recent announcement of a dividend increase is a testament to its financial stability and shareholder-friendly practices. With a market capitalization of approximately $6.28 billion and a P/E ratio that stands at a competitive 16.8, the company showcases a balance between value and profitability. Notably, the P/E ratio has seen a slight adjustment in the last twelve months as of Q1 2024, coming in at a lower 15.34, which may reflect a more favorable earnings outlook.
The dividend increase aligns with one of the InvestingPro Tips highlighting that Timken has not only raised its dividend for 10 consecutive years but has maintained dividend payments for an impressive 54 consecutive years. This consistency is a strong indicator of the company's commitment to returning value to its shareholders. Additionally, the InvestingPro Tips reveal that 6 analysts have revised their earnings upwards for the upcoming period, suggesting that the company's financial prospects may be even brighter than current figures indicate.
Investors considering Timken's stock will find the dividend yield currently at 1.48%, with a growth in dividends over the last twelve months at 6.45%. Moreover, the company's gross profit margin stands solid at 31.88%, reinforcing the company's efficiency in managing its cost of goods sold. These metrics demonstrate Timken's ability to generate ample profit while rewarding shareholders through dividends.
For those interested in a deeper analysis, InvestingPro offers additional tips on Timken, which could provide further insight into investment decisions. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore more of what InvestingPro has to offer, including a total of 7 additional InvestingPro Tips for Timken.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.