Brady Corp continues weak dividend growth streak
A 2.1% hike in 2024 marks 39 consecutive years of increases
Brady Corporation (BRC) announced a dividend increase of 2.1% to $0.24 quarterly per share. This follows a dividend hike of 2.2 percent in the previous two years and marks the company's 37th consecutive year of annual dividend increases. The company prefers buybacks over dividend growth.
The manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people has a 1.3% dividend yield at a stock price of $72.15. Interestingly enough BRC is trading at an all time high right now.
The next BRC dividend will be paid on October 31, 2024, to shareholders of record at the close of business on October 10, 2024. This dividend represents the 39th consecutive annual increase in dividends. Â
Weak annual dividend growth (and strong buybacks)
Brady has not been the the super dividend grower since 2009 with annual increases between 1 and 3% since. The last doublel digit increase dates back toc 2008 when Brady hiked by 13.3%. This was followed up by a 2.9% hike in both 2009 and 2010, followed by even smaller increases every single year since.
This results in a 5 year CAGR of 2.0% for Brady Corp, which is very poor for a company with a dividend yield of just 1.3%. We think that Brady can easily step up with its annual dividend hikes with an estimated $190 million free cash flow for 2024 and only $52 million in annual dividend payments.
Brady spends much more every year on buybacks with the number of shares outstanding 3 to 4% annually in the last two years. More important, the company has a net cash position.
Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. Its IDS segment includes identification and healthcare products, and the WPS segment includes workplace safety and compliance products. The company's brands include Electromark, Identicard, PromoVision, Scafftag, Seton and Emedco. Founded in 1914, Brady has a diverse customer base in electronics, telecommunications, manufacturing, electrical, construction, medical, aerospace and a variety of other industries. Brady is headquartered in Milwaukee, Wisconsin.
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.