Trane Technologies plc (TT) has revealed plans to raise its common stock cash dividend by 14% to $0.67 per share quarterly and to $2.68 per share annually, beginning in the first quarter of 2022. The move is subject to the approval of the Board of Directors.
The diversified industrial manufacturing company was formed by the merger of Ingersoll-Sergeant Drill Company and Rand Drill Company. It provides climate control solutions for buildings, homes and transportation. (See Trane stock charts on TipRanks)
The company’s new annual dividend of $2.68 per share will reflect a dividend yield of 1.4% based on Friday’s closing price.
The CEO of Trane, Dave Regnery, said, “Our sustainability-focused strategy and strong execution enables us to maximize business reinvestment, while at the same time return substantial cash to shareholders. This announcement reinforces our commitment to paying a competitive dividend that grows at or above the rate of earnings growth over time, and reflects continued confidence in our ability to generate strong cash flow.”
Last month, Deutsche Bank analyst Nicole Deblase maintained a Hold rating on the stock and raised the price target to $193 from $192 (downside potential of 0.2%).
Consensus among analysts is a Hold based on 2 Buys, 4 Holds and 1 Sell. The average Trane price target of $195.86 implies upside potential of 1.3%.
Investors should always be aware of the risks involved in any stock. According to the new TipRanks’ Risk Factors tool, Trane is at risk mainly from one factor: Legal & Regulatory, which contributes 32% to the total 28 risks identified for the stock.