Columbus McKinnon Corporation (NASDAQ: CMCO) has announced a 17% hike in its quarterly dividend rate. The increase seems to be in sync with the company’s policy of returning higher value to shareholders.
Despite the happy news, shares of Columbus McKinnon decreased 1.5% to close at $43.36 on Monday.
The company has expertise in manufacturing and selling material handling products. Among its products offered are industrial cranes, hoists, elevator application drive systems, and others. It is headquartered in Getzville, NY.
Inside the Headlines
Columbus McKinnon’s board of directors approved a $0.01 per share hike in the quarterly dividend, which now stands at $0.07 per share. On an annualized basis, the company’s dividend is now $0.28 per share, up from the previous dividend of $0.24 per share.
The company will pay the new quarterly dividend on May 16 to all shareholders in the company’s records as of May 6, 2022.
Snapshot of Columbus McKinnon’s Shareholders-Friendly Policy
Over time, Columbus McKinnon has rewarded its shareholders with dividend payments. In the first nine months of the Fiscal Year 2022 (ended December 31, 2021), the company distributed dividends of approximately $4.9 million (or $0.12 per share), up 13% from $4.3 million (or $0.12 per share) distributed in the year-ago comparable period.
Before the abovementioned increment, the company had hiked its quarterly dividend rate by $0.01 per share in March 2019. Also, it then declared a $20-million share buyback program. So far, no shares have been repurchased under this program.
Recently, Christopher Howe, an analyst at Barrington maintained a Buy rating on Columbus McKinnon with a price target of $66 (52.21% upside potential).
The Street is optimistic about the growth prospects of Columbus McKinnon and has a Strong Buy consensus rating on the stock. Also, the average Columbus McKinnon price target of $65.67 suggests 51.45% upside potential from current levels. Over the past year, shares of Columbus McKinnon have decreased 17.5%.
The TipRanks Bloggers Sentiments Tool suggests that financial blogger opinions are 100% Bullish on CMCO, compared to the sector average of 69%.
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