Badger Meter: Will Increasing Earnings Lead to a Dividend Boost
Milwaukee-based Badger Meter, Inc.(NYSE:BMI) recently announced its regular quarterly cash dividend of $0.27 per share, payable to shareholders of record on November 24, 2023, and due on December 8, 2023.With a rich legacy of over a century in water technology innovation, Badger Meter continues to be a global provider of industry-leading water solutions, including flow measurement, water quality analysis, and other system parameters.
As of the writing of this article, Badger Meter’s 12 Months dividend payout ratio has sequentially decreased to 32.99% in the third quarter of 2023.This decrease comes as no surprise, given the company’s rising earnings per share and maintaining a payout ratio below its average.However, with the sustained growth of Badger Meter’s earnings, there is speculation as to whether the company will increase its dividend in the near future.
To put the company’s performance into perspective within the Capital Goods sector, it is worth noting that 21 companies had a higher 12 Months dividend payout ratio than Badger Meter.Nonetheless, Badger Meter ranks higher than 733 other companies in the second quarter of 2023, highlighting its competitive standing.
With increased earnings and a healthy payout ratio, there is a reasonable expectation that Badger Meter may consider increasing its dividend in the coming periods.This would further enhance its appeal to investors looking for stable dividend income.As the company continues to innovate and provide reliable water solutions, investors may find their confidence in Badger Meter rewarded with a potential dividend boost.
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