Ametek Hikes Dividend by 50% - Analyst Blog
May 19 2014 - 2:00PM
Zacks
Ametek Inc. (AME)
has recently announced a quarterly dividend hike of 3 cents thereby
increasing it to 9 cents per share. This translates into a 50%
increase from the prior dividend.
The increased dividend will be paid
on Jun 30, 2014, to stockholders of record as of Jun 16. Prior to
this announcement, Ametek had been paying a quarterly dividend of 6
cents per share.
Ametek’s strong balance sheet and
cash flows provide financial flexibility in matters of incremental
dividend, share repurchases and strategic acquisitions. During the
last-concluded quarter, cash and cash equivalents totaled $265.3
million at quarter-end. The debt to total capital ratio was 30.1%.
We remain encouraged by Ametek’s strong cash position which enables
it to service its long-term debts.
Dividend hikes ensure higher
returns from the stock thereby inspiring investors’ loyalty. The
strength of Ametek’s business model is reflected in its strong cash
generation capabilities and commitment to return value to
shareholders.
Ametek manufactures and sells
electronic instruments and electromechanical devices. The company
reported a decent first quarter with both earnings and revenues
increasing year over year. Revenues of $975.3 million were up 10%
year over year due to strong demand in the Electronic as well as
Electromechanical segments. Earnings of 57 cents exceeded the Zacks
Consensus Estimate by a penny.
Currently, Ametek has a Zacks Rank
#2 (Buy). Stocks that have been performing well and are worth
considering include Universal Electronics (UEIC),
Agilent Technologies (A) and Garmin
Ltd. (GRMN). Universal Electronics sports a Zacks Rank #1
(Strong Buy), while Agilent Technologies and Garmin have the same
Zacks Rank as Ametek.
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