Graco Inc. (NYSE: GGG) has announced an increase in its quarterly dividend, now set at $0.30 per share. The announcement was made on December 5, 2023, marking a significant change from the previous dividend of $0.28. Shareholders on record as of January 19, 2024, will receive this payment on February 4, 2024. The upcoming dividend represents a 7.3% increase and gives the company a dividend yield of 1.4%.
The ex-dividend date is scheduled for January 16, 2024, allowing investors to assess their positions before this critical date. Over the past three years, Graco has maintained a modest average dividend increase of 0.1% per year, but it has consistently raised its dividend annually for the past 29 consecutive years. The company’s payout ratio stands at 37.1%, indicating that its earnings sufficiently cover the dividend payments.
Analysts project that Graco will earn $3.24 per share in the upcoming year, which suggests that the company will continue to manage its dividend obligations effectively. With an expected future payout ratio of 36.4%, Graco appears well-positioned to sustain its dividend policy.
Stock Performance and Analyst Ratings
As of the latest trading session, Graco’s stock opened at $86.04. The stock has shown stability, with a fifty-day moving average of $82.64 and a two-hundred-day moving average of $83.99. Over the past year, the stock has fluctuated between a low of $72.06 and a high of $89.67, reflecting a market capitalization of $14.26 billion. The company has a price-to-earnings (P/E) ratio of 29.36 and a price-to-earnings growth (P/E/G) ratio of 2.70, with a beta of 1.09 indicating moderate volatility.
Recent analyst evaluations have provided mixed signals regarding Graco’s stock performance. KeyCorp reaffirmed a “sector weight” rating, while Weiss Ratings downgraded the stock from “buy (B-)” to “hold (C+)”. Robert W. Baird has set a target price of $89.00. Currently, one analyst has assigned a “buy” rating, while three have opted for a “hold” rating. According to data from MarketBeat.com, the consensus rating remains at “hold” with a target price averaging $87.00.
Company Overview
Founded in 1926, Graco Inc. is headquartered in Minneapolis, Minnesota. The company specializes in manufacturing fluid handling systems and components. It has earned a reputation for innovation in sectors such as spray finishing, lubrication, and fluid management technologies. Graco’s diverse product offerings cater to various markets, including paint and coatings applications, general industry, and process fluids.
The company’s extensive portfolio includes airless and air-assisted spray equipment, pumps for oil and gas applications, industrial lubrication systems, and automated dispensing equipment. With a strong commitment to customer needs and industry advancements, Graco continues to be a leader in its field, poised for future growth.
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