Alamo Group, Inc. (NYSE:ALG) to Issue Quarterly Dividend of $0.34

Key Points

• Alamo Group declared a quarterly dividend of $0.34 per share, payable October 28 to shareholders of record on October 15. The annualized dividend is $1.36, representing a 0.9% yield.
• The company has raised its dividend for 14 consecutive years, with a low 11.9% payout ratio, indicating substantial earnings coverage and room to continue payments.
• Alamo Group recently beat quarterly earnings and revenue estimates, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $188, above its reported $156.27 share price.

Alamo Group, Inc. (NYSE:ALG - Get Free Report) declared a quarterly dividend on Thursday, October 1st. Stockholders of record on Thursday, October 15th will be paid a dividend of $0.34 per share by the industrial products company on Wednesday, October 28th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Thursday, October 15th.

Alamo Group has increased its dividend by an average of 0.2%per year over the last three years and has increased its dividend every year for the last 14 years. Alamo Group has a dividend payout ratio of 11.9% meaning its dividend is sufficiently covered by earnings. Analysts expect Alamo Group to earn $12.30 per share next year, which means the company should continue to be able to cover its $1.36 annual dividend with an expected future payout ratio of 11.1%.

Alamo Group Price Performance

Alamo Group stock opened at $156.27 on Friday. The stock has a 50-day moving average price of $164.98 and a two-hundred day moving average price of $163.50. The company has a market capitalization of $1.90 billion, a PE ratio of 18.74, a P/E/G ratio of 0.92 and a beta of 1.08. Alamo Group has a 12 month low of $145.76 and a 12 month high of $219.88. The company has a current ratio of 4.39, a quick ratio of 2.48 and a debt-to-equity ratio of 0.22.

Alamo Group (NYSE:ALG - Get Free Report) last announced its earnings results on Monday, August 3rd. The industrial products company reported $2.82 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.74 by $0.08. Alamo Group had a return on equity of 9.83% and a net margin of 6.08%.The business had revenue of $450.73 million during the quarter, compared to analyst estimates of $437.48 million. Analysts expect that Alamo Group will post 10.52 EPS for the current year.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on ALG shares. Weiss Ratings raised shares of Alamo Group from a "hold (c-)" rating to a "hold (c)" rating in a research note on Friday, September 4th. DA Davidson reiterated a "neutral" rating and set a $188.00 price target on shares of Alamo Group in a research note on Wednesday, July 1st. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, Alamo Group currently has an average rating of "Moderate Buy" and a consensus target price of $188.00.

About Alamo Group

Alamo Group Inc NYSE: ALG is an industrial equipment manufacturer that designs, produces and services equipment used in vegetation management, infrastructure maintenance and agricultural applications. The company serves municipalities, government agencies, contractors, utility companies, agricultural operators and other commercial customers.

Its product portfolio includes mowing and brush-cutting equipment, roadside and right-of-way maintenance machinery, tree-care equipment, excavators, street sweepers, snow-removal equipment and agricultural implements.

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