DOW JONES NEWSWIRES
Ecolab Inc.'s (ECL) board raised the cleaning company's
quarterly divided by 13%, marking the 19th straight year of
increases as the company joins a slew of others increasing payouts
to holders.
The popularity of dividends has increased alongside share
buybacks as companies seek ways to appeal to investors and tap cash
piles they no longer need to clutch as tightly in an improving
economy.
Chief Executive Douglas M. Baker Jr. said Thursday that the
increase to 17.5 cents a share resulted from the company's solid
balance sheet and outlook for further growth. The cost is some $19
million a year.
Ecolab--which provides cleaning, sanitation and pest-control
products and services--has been reporting better results in the
last several quarters on strength in its U.S. cleaning and
sanitizing business. The company, which also has large
international operations, reported its third-quarter profit jumped
20% on investment, revenue and margin improvement.
Shares closed at $47.96 and weren't active after hours.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com