Kadant Inc Declares Quarterly Dividend of $0.36 (NYSE:KAI)

Key Points

• Kadant declared a quarterly dividend of $0.36 per share, payable November 12 to shareholders of record October 15. The payment represents a $1.44 annualized dividend and approximately a 0.5% yield.
• The dividend appears well covered, with a current payout ratio of 14.1%; Kadant has increased its dividend for 12 consecutive years. Analysts expect a future payout ratio of about 10.3% based on projected earnings.
• Kadant recently exceeded quarterly earnings and revenue expectations, reporting $3.42 in EPS and $312.88 million in revenue, while analysts maintain a consensus “Hold” rating and a $357.50 price target.

Kadant Inc (NYSE:KAI - Get Free Report) announced a quarterly dividend on Thursday, September 10th. Investors of record on Thursday, October 15th will be paid a dividend of 0.36 per share by the industrial products company on Thursday, November 12th. This represents a c) annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Thursday, October 15th.

Kadant has increased its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 12 years. Kadant has a payout ratio of 14.1% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Kadant to earn $14.04 per share next year, which means the company should continue to be able to cover its $1.44 annual dividend with an expected future payout ratio of 10.3%.

Kadant Trading Down 1.8%

Shares of KAI stock opened at $285.88 on Friday. The company has a market cap of $3.38 billion, a price-to-earnings ratio of 30.74 and a beta of 1.17. The company has a debt-to-equity ratio of 0.49, a current ratio of 2.59 and a quick ratio of 1.63. The firm has a fifty day moving average price of $310.38 and a 200-day moving average price of $312.96. Kadant has a 1 year low of $244.87 and a 1 year high of $354.07.

Kadant (NYSE:KAI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $3.42 EPS for the quarter, beating the consensus estimate of $2.94 by $0.48. Kadant had a net margin of 9.52% and a return on equity of 13.16%. The firm had revenue of $312.88 million for the quarter, compared to the consensus estimate of $299.17 million. During the same period last year, the firm earned $2.31 EPS. The company's revenue was up 22.6% on a year-over-year basis. Kadant has set its FY 2026 guidance at 12.430-12.680 EPS and its Q3 2026 guidance at 2.900-3.000 EPS. As a group, equities analysts predict that Kadant will post 12.56 earnings per share for the current year.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the company. DA Davidson raised their price objective on Kadant from $306.00 to $335.00 and gave the company a "neutral" rating in a research report on Thursday, August 6th. Weiss Ratings raised shares of Kadant from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, August 17th. Wall Street Zen lowered shares of Kadant from a "buy" rating to a "hold" rating in a research report on Saturday, August 15th. Finally, Zacks Research cut Kadant from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, May 20th. One investment analyst has rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $357.50.

Kadant Company Profile

Kadant Inc, headquartered in Westford, Massachusetts, is a global supplier of high‐value, critical components and engineered systems for the pulp and paper industry and other process industries. The company's product portfolio spans stock preparation technologies, refiners and pulpers, fluid handling systems, and web‐handling equipment designed to optimize the efficiency and quality of paper production. In addition to capital equipment, Kadant offers aftermarket services, including spare parts, maintenance programs and process optimization consulting, which together support long‐term customer productivity and reliability.

Originally part of a larger industrial conglomerate, Kadant was established as an independent public company in 1991.

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