Tennant Company (NYSE:TNC) to Issue Dividend Increase - $0.33 Per Share

Key Points

• Tennant increased its quarterly dividend 4.8% to $0.325 per share, payable December 15 to shareholders of record November 30. The annualized dividend is $1.30 per share, yielding approximately 1.9%.
• The company has raised its dividend for 53 consecutive years, with a current payout ratio of 18.8%, indicating substantial earnings coverage.
• Tennant reported quarterly EPS of $1.40, beating analyst expectations of $0.98, although revenue of $322.3 million fell short of estimates. Analysts maintain an average “Hold” rating with a $91 price target.

Tennant Company (NYSE:TNC - Get Free Report) announced a quarterly dividend on Monday, November 2nd. Shareholders of record on Monday, November 30th will be given a dividend of $0.3250 per share by the industrial products company on Tuesday, December 15th. This represents a $1.30 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Monday, November 30th. This is a 4.8% increase from Tennant's previous quarterly dividend of $0.31.

Tennant has increased its dividend by an average of 0.1% annually over the last three years and has raised its dividend annually for the last 53 consecutive years. Tennant has a dividend payout ratio of 18.8% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Tennant to earn $5.66 per share next year, which means the company should continue to be able to cover its $1.24 annual dividend with an expected future payout ratio of 21.9%.

Tennant Trading Up 4.0%

Shares of TNC stock opened at $69.06 on Tuesday. The company has a quick ratio of 1.37, a current ratio of 2.04 and a debt-to-equity ratio of 0.67. The business has a 50-day moving average price of $67.70 and a two-hundred day moving average price of $75.88. Tennant has a 12-month low of $60.17 and a 12-month high of $91.93. The firm has a market cap of $1.18 billion, a P/E ratio of 67.71, a price-to-earnings-growth ratio of 2.46 and a beta of 1.15.

Tennant (NYSE:TNC - Get Free Report) last posted its quarterly earnings data on Monday, November 2nd. The industrial products company reported $1.40 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.98 by $0.42. The firm had revenue of $322.30 million during the quarter, compared to analysts' expectations of $330.75 million. Tennant had a return on equity of 13.32% and a net margin of 1.50%. The company's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same period in the prior year, the business earned $1.46 EPS. Equities analysts anticipate that Tennant will post 3.84 EPS for the current fiscal year.

Analyst Ratings Changes

A number of research analysts have commented on the stock. Weiss Ratings cut shares of Tennant from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, September 11th. Zacks Research downgraded shares of Tennant from a "strong-buy" rating to a "strong sell" rating in a research note on Monday, August 10th. Finally, Wall Street Zen lowered shares of Tennant from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Tennant presently has an average rating of "Hold" and an average target price of $91.00.

About Tennant

Tennant Company is a manufacturer of cleaning equipment and technologies for commercial, industrial and institutional customers. Its product portfolio includes floor scrubbers, sweepers, combination machines, carpet extractors, outdoor cleaning equipment and related vacuum systems. The company also offers cleaning solutions, replacement parts, maintenance programs and other services designed to support facility-management operations.

Tennant develops technology aimed at improving cleaning efficiency and reducing environmental impact.

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