MSC Industrial Direct Company, Inc. (NYSE:MSM) to Issue Dividend Increase - $0.89 Per Share

Key Points

• MSC Industrial Direct raised its quarterly dividend 2.3% to $0.89 per share, equivalent to $3.56 annually and a 2.7% yield. The dividend is payable November 25 to shareholders of record November 11, with an ex-dividend date of November 10.
• The dividend has been increased for three consecutive years, but the current payout ratio is relatively high at 89% of earnings. Based on projected earnings, the forward payout ratio is expected to improve to approximately 66.3%.
• Institutional investors own 79.26% of MSC Industrial Direct’s stock, with several major investors recently increasing their positions.

MSC Industrial Direct Company, Inc. (NYSE:MSM - Get Free Report) declared a quarterly dividend on Wednesday, October 14th. Investors of record on Wednesday, November 11th will be given a dividend of $0.89 per share by the industrial products company on Wednesday, November 25th. This represents a $3.56 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Tuesday, November 10th. This is a 2.3% increase from MSC Industrial Direct's previous quarterly dividend of $0.87.

MSC Industrial Direct has decreased its dividend payment by an average of 0.2% per year over the last three years and has increased its dividend annually for the last 3 consecutive years. MSC Industrial Direct has a dividend payout ratio of 89.0% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Analysts expect MSC Industrial Direct to earn $5.25 per share next year, which means the company should continue to be able to cover its $3.48 annual dividend with an expected future payout ratio of 66.3%.

MSC Industrial Direct Price Performance

Shares of NYSE MSM opened at $132.46 on Thursday. The company has a debt-to-equity ratio of 0.06, a current ratio of 1.55 and a quick ratio of 0.72. The company has a market cap of $7.40 billion, a price-to-earnings ratio of 32.00 and a beta of 0.82. The stock's 50-day moving average is $122.77 and its two-hundred day moving average is $114.98. MSC Industrial Direct has a 1-year low of $78.80 and a 1-year high of $132.77.

Institutional Investors Weigh In On MSC Industrial Direct

Several institutional investors have recently added to or reduced their stakes in the business. Auto Owners Insurance Co increased its position in MSC Industrial Direct by 12,181.8% during the fourth quarter. Auto Owners Insurance Co now owns 3,254,670 shares of the industrial products company's stock worth $273,718,000 after buying an additional 3,228,170 shares during the period. Alberta Investment Management Corp boosted its holdings in shares of MSC Industrial Direct by 213.7% in the fourth quarter. Alberta Investment Management Corp now owns 619,600 shares of the industrial products company's stock valued at $52,108,000 after acquiring an additional 422,100 shares during the period. Alyeska Investment Group L.P. acquired a new stake in shares of MSC Industrial Direct in the second quarter valued at approximately $49,939,000. First Trust Advisors LP boosted its holdings in shares of MSC Industrial Direct by 20.9% in the first quarter. First Trust Advisors LP now owns 1,773,133 shares of the industrial products company's stock valued at $163,607,000 after acquiring an additional 306,436 shares during the period. Finally, Deprince Race & Zollo Inc. grew its position in shares of MSC Industrial Direct by 43.0% during the first quarter. Deprince Race & Zollo Inc. now owns 705,775 shares of the industrial products company's stock worth $65,122,000 after acquiring an additional 212,074 shares during the last quarter. Hedge funds and other institutional investors own 79.26% of the company's stock.

MSC Industrial Direct Company Profile

MSC Industrial Direct Co, Inc is a distributor of metalworking and industrial products serving manufacturers and other organizations across North America. The company provides products used in maintenance, repair and operations, including cutting tools, abrasives, tooling components, fasteners, safety equipment, material handling supplies, and janitorial and facility-maintenance products.

MSC serves customers through an omnichannel platform that includes e-commerce, sales representatives, customer service teams, catalogs, and branch locations.

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