Lennox Bumps Up Quarterly Dividend By 19%

Lennox International (LII) announced an increased quarterly cash dividend of $0.92 per share, up 19% from the prior payout. The provider of climate control products for the heating, ventilation, air conditioning, and refrigeration markets had previously increased its quarterly dividend by 20% to $0.77 in June 2019.

Lennox announced that the new dividend will be paid on July 15 to shareholders of record as of June 30.

The company’s annual dividend of $3.68 per share now reflects a dividend yield of 1.09%.

In April, Lennox reported Q1 results. The company’s Q1 earnings more than quadrupled on a year-over-year basis to $2.27 per share and outpaced Street estimates of $1.26. Revenue jumped 29% to $931 million and came in well ahead of analysts’ expectations of $786.51 million. For 2021, the company expects adjusted EPS to be in the range of $11.40 – $12.00. (See Lennox stock analysis on TipRanks)

On April 27, Barclays analyst Julian Mitchell increased the stock’s price target to $340 from $315 and reiterated a Hold rating following the company’s Q1 earnings results.

Mitchell views the company’s revised guidance as conservative.

The rest of the Street is bearish on the stock with a Moderate Sell consensus rating. That’s based on 7 Holds and 3 Sells. The average analyst price target of $323.80 implies 4.4% downside potential to current levels. Shares have increased 15% over the past six months.

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