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Donaldson Company launches buyback program, continues dividend tradition

EditorNikhilesh Pawar
Published 18/11/2023, 06:42 am
© Reuters.
DCI
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MINNEAPOLIS - Donaldson Company, Inc. (NYSE:DCI), a leader in technology-led filtration products, has announced a new share buyback program and the continuation of its long-standing dividend payout tradition. The company, which has been a consistent member of the S&P High-Yield Dividend Aristocrats Index, is reinforcing its commitment to shareholder returns.

The Board approved a new share repurchase initiative targeting up to 12 million shares. This move represents about 10% of the company's outstanding stock and comes as a follow-up to the May 2019 authorization, under which approximately 11 million shares were repurchased from an available 13 million. The new buyback plan underscores Donaldson's ongoing strategy to enhance shareholder value and reflects confidence in the company's financial strength.

In addition to the share repurchase program, Donaldson declared a quarterly dividend of $0.25 per share, maintaining its impressive record of quarterly dividends for over six decades. The upcoming dividend is scheduled for distribution on December 20 to shareholders of record as of December 5. This announcement marks the company's 28th consecutive year of increased annual dividends, showcasing its robust financial health and dedication to its shareholders.

Donaldson's global presence spans over 140 locations, where skilled employees work closely with small business owners and major original equipment manufacturer (OEM) brands across various advanced markets. The firm stands by its mission: "Advancing Filtration for a Cleaner World," reflecting its commitment to innovation and sustainability in the industry.

Investors have taken note of Donaldson's consistent performance and strategic initiatives aimed at fostering long-term growth while providing immediate returns through dividends and share buybacks. With these latest announcements, Donaldson continues to demonstrate its role as a stalwart in the industrial sector and a reliable contributor to shareholder wealth.

InvestingPro Insights

Donaldson Company, Inc. (NYSE:DCI) has been a strong performer in the industrial sector, with the InvestingPro data highlighting a market cap of $7300M USD and a P/E ratio of 20.38 as of Q4 2023. The company's revenue for the last twelve months as of Q4 2023 stood at $3430.8M USD, indicating a steady financial performance.

InvestingPro Tips provide further insight into the company's operations. Donaldson has consistently increased its earnings per share and has raised its dividend for 27 consecutive years, supporting the company's recent announcement of continued dividend payouts. The company also operates with a high return on assets, which is indicative of its efficient use of its resources.

It's worth noting that InvestingPro offers many more tips for subscribers, which are currently available at a special Black Friday discount of up to 55%. This is a great opportunity for investors seeking to gain a deeper understanding of the market dynamics and make informed investment decisions.

In conclusion, Donaldson's strong financial performance, along with its commitment to shareholder returns, make it a company worth watching for potential investors.

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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