Mueller Water Products (NYSE:MWA) to Issue Quarterly Dividend of $0.08

Key Points

• Mueller Water Products raised its quarterly dividend 14.3% to $0.08 per share, payable November 19 to shareholders of record November 9. The annualized dividend is $0.32, yielding approximately 1.4%.
• The dividend appears well covered, with a payout ratio of 20.7%; analysts expect next year’s earnings to support an estimated payout ratio of 17.3%. The company has increased its dividend for 10 consecutive years.
• Mueller’s latest quarterly results exceeded expectations, with EPS of $0.50 versus the $0.39 consensus and revenue of $395.9 million. Revenue increased 4.1% year over year, while institutional investors own 91.68% of the stock.

Mueller Water Products (NYSE:MWA - Get Free Report) announced a quarterly dividend on Thursday, October 22nd. Shareholders of record on Monday, November 9th will be paid a dividend of $0.08 per share by the industrial products company on Thursday, November 19th. This represents a $0.32 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Monday, November 9th. This is a 14.3% increase from Mueller Water Products's previous quarterly dividend of $0.07.

Mueller Water Products has raised its dividend by an average of 0.1% per year over the last three years and has increased its dividend annually for the last 10 consecutive years. Mueller Water Products has a dividend payout ratio of 20.7% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Mueller Water Products to earn $1.62 per share next year, which means the company should continue to be able to cover its $0.28 annual dividend with an expected future payout ratio of 17.3%.

Mueller Water Products Stock Performance

NYSE MWA opened at $22.31 on Friday. The company has a debt-to-equity ratio of 0.40, a current ratio of 4.64 and a quick ratio of 3.08. Mueller Water Products has a 1-year low of $20.90 and a 1-year high of $31.00. The firm has a market capitalization of $3.48 billion, a P/E ratio of 15.82, a P/E/G ratio of 0.90 and a beta of 1.01. The business's 50-day simple moving average is $22.95 and its 200-day simple moving average is $25.08.

Mueller Water Products (NYSE:MWA - Get Free Report) last posted its earnings results on Wednesday, August 5th. The industrial products company reported $0.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.39 by $0.11. The firm had revenue of $395.90 million during the quarter, compared to the consensus estimate of $391.49 million. Mueller Water Products had a net margin of 15.02% and a return on equity of 23.55%. The company's revenue was up 4.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.34 EPS. Equities analysts predict that Mueller Water Products will post 1.52 EPS for the current year.

Insider Transactions at Mueller Water Products

In other Mueller Water Products news, Director Brian Healy purchased 1,376 shares of the business's stock in a transaction that occurred on Wednesday, October 7th. The shares were acquired at an average price of $21.75 per share, for a total transaction of $29,928.00. Following the completion of the purchase, the director owned 26,322 shares in the company, valued at $572,503.50. The trade was a 5.52% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Christine Ortiz sold 12,048 shares of the stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $24.23, for a total value of $291,923.04. Following the completion of the transaction, the director directly owned 30,824 shares of the company's stock, valued at $746,865.52. This represents a 28.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 52,598 shares of company stock valued at $1,360,685. 1.10% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Mueller Water Products

A number of institutional investors have recently made changes to their positions in MWA. First Trust Advisors LP grew its position in shares of Mueller Water Products by 34.0% during the first quarter. First Trust Advisors LP now owns 6,036,679 shares of the industrial products company's stock worth $165,948,000 after buying an additional 1,530,193 shares in the last quarter. Janus Henderson Group PLC raised its holdings in Mueller Water Products by 58.6% in the first quarter. Janus Henderson Group PLC now owns 1,934,813 shares of the industrial products company's stock valued at $53,217,000 after acquiring an additional 714,913 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in Mueller Water Products in the second quarter valued at $28,496,000. Bank of America Corp DE raised its holdings in Mueller Water Products by 30.0% in the first quarter. Bank of America Corp DE now owns 888,975 shares of the industrial products company's stock valued at $24,438,000 after acquiring an additional 205,269 shares in the last quarter. Finally, Bessemer Group Inc. boosted its stake in Mueller Water Products by 354.9% during the 1st quarter. Bessemer Group Inc. now owns 588,830 shares of the industrial products company's stock valued at $16,187,000 after acquiring an additional 459,393 shares during the last quarter. 91.68% of the stock is owned by institutional investors and hedge funds.

About Mueller Water Products

Mueller Water Products, Inc NYSE: MWA manufactures products and provides services used in the treatment, transmission, distribution, and measurement of water. Its customers include municipalities, water utilities, distributors, contractors, and industrial organizations.

The company's product portfolio includes water valves, fire hydrants, pipe fittings, repair and connection products, and related infrastructure equipment. Through its Echologics business, Mueller also provides acoustic leak-detection technologies and other solutions designed to help utilities monitor and manage water distribution systems.

Mueller Water Products traces its history to Mueller Co, which was founded in 1857.

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