Badger Meter: Quiet Powerhouse in Smart Water Technology
BMI is a debt free dividend growth monster
One of the stocks we added to the dividend hike portfolio is Badger Meter Inc. BMI 0.00%↑ . This company has a rock solid balance sheet and grows by double digits. The dividend was hiked by almost 26% in 2024 and we expect more of that strong dividend growth in the coming years.
Badger Meter: Quiet Powerhouse in Smart Water Technology
Badger Meter, Inc. is a century-old company at the forefront of smart water metering and flow measurement technologies. Headquartered in Milwaukee and founded in 1905, the company develops advanced metering infrastructure (AMI), flow instrumentation, and cloud-based analytics platforms for utilities and industrial clients worldwide.
A Modern Take on Water Management
Badger Meter provides solutions that help cities and companies measure, monitor, and manage water usage in real time. Its product suite includes ultrasonic and electromagnetic flow meters, pressure sensors, and its BEACON® AMA software platform—a cloud-based tool enabling data-driven insights and leak detection.
The business has evolved from mechanical metering roots into a fully integrated, IoT-driven platform company, backed by a series of strategic acquisitions (e.g., s::can, ATi UK) that enhance its capabilities in water quality monitoring and smart analytics.
Strong Fundamentals & Explosive Growth
While the dividend may seem modest at a 0.6% yield, dividend growth is a standout feature. Badger Meter raised its dividend by 26% in 2024 and 20% in
2023, and with a low payout ratio, double-digit increases are expected to continue in the coming years.
Underpinning this dividend growth is a consistently high-performance business:
Revenue growth has run at double-digit rates for years.
2024 revenue was up 17.5% to $826.6 million.
2025 revenue is projected to reach $925 million, a new all-time high (+12%).
Earnings per share (EPS) are also growing rapidly:
From $4.23 in 2024 to $4.87 in 2025 (+15%).
The company has a pristine balance sheet with no debt and had a net cash position of nearly $300 million by the end of 2024.
While the P/E ratio of 48 may seem high, it reflects the company’s exceptional growth trajectory and high return on invested capital. The current market cap stands at $6.9 billion, with shares trading around $239.
Market Dynamics and Positioning
Badger Meter benefits from long-term tailwinds: aging water infrastructure, increasing climate-related water risks, and global investment in digital utility networks. Its competition includes Sensus (Xylem), Itron, Diehl Metering, and Kamstrup—but few rivals offer Badger’s combination of U.S.-based manufacturing, vertically integrated hardware/software, and financial strength.
Analyst Sentiment
Wall Street remains constructive:
1 Strong Buy
3 Buys
5 Holds
0 Sells
The absence of sell ratings speaks volumes about investor confidence in the company’s long-term outlook.
BMI stock dropped big time last month but rebounded strongly since. We wanted to pick up the stock earlier, but are happy with the current position at a slightly higher price. The stock is hunting all time highs again. Badger Meter is also one of the Dividend Heroes.
Disclaimer: The information provided here is for informational purposes only and should not be considered financial advice. Investors should conduct their own research or consult with a financial advisor before making any investment decisions.