Gorman-Rupp (NYSE:GRC) is set to go ex-dividend in four days, requiring investors to purchase shares before November 14th to be eligible for the December 8th dividend payout. The company, which has a current stock price of $30.16, will disburse US$0.18 per share, following a year that saw a total payout of US$0.72 per share.
This past year's disbursement has resulted in a trailing yield of 2.4%, making it an attractive option for dividend-focused investors. However, the sustainability and reliability of these dividends are also factors to consider. In the previous fiscal year, Gorman-Rupp allocated 64% of its earnings and 37% of its free cash flow towards dividends.
This allocation suggests a potentially sustainable dividend backed by both profits and cash flow. The company's commitment to returning capital to shareholders has been demonstrated by its consistent dividend payments over the past year. The upcoming ex-dividend date marks another opportunity for investors to benefit from this return strategy.
As the ex-dividend date approaches, investors have a limited window to acquire shares and qualify for the next dividend payout. It remains to be seen how this will impact trading activity and the company's stock price in the coming days.
With this potential return on investment on the horizon, Gorman-Rupp continues to demonstrate its commitment to shareholder value through its consistent and potentially sustainable dividend payments.
InvestingPro Insights
InvestingPro real-time data and tips further highlight the potential value of investing in Gorman-Rupp (NYSE:GRC). Firstly, Gorman-Rupp has a track record of raising its dividend for 4 consecutive years, a testament to its financial reliability and commitment to shareholder returns.
Moreover, InvestingPro data indicates promising prospects for the company's financial performance. Net income is expected to grow this year, and analysts are also anticipating sales growth. This positive outlook can potentially lead to further dividend increases in the future.
Finally, the company's strong financial position is underscored by the fact that its liquid assets exceed short term obligations. This is a key indicator of the company's ability to maintain and potentially increase dividend payments, even in challenging market conditions.
These insights are just a few of the numerous InvestingPro Tips available for Gorman-Rupp, offering investors a comprehensive understanding of the company's financial health and future prospects. For access to more detailed insights and tips, consider exploring the full range of InvestingPro products.
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