Valmont Industries, Inc. (NYSE:VMI) Announces Quarterly Dividend of $0.77

Key Points

• Valmont Industries declared a quarterly dividend of $0.77 per share, payable January 15 to shareholders of record December 24. The dividend implies $3.08 in annualized payments and a 0.7% yield.
• The dividend appears well covered, with a current payout ratio of 15.6% and an expected future payout ratio of 11.8% based on projected earnings.
• Valmont’s latest earnings exceeded expectations, with EPS of $6.24 versus the $5.70 consensus and revenue up 5.5% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $587.

Valmont Industries, Inc. (NYSE:VMI - Get Free Report) announced a quarterly dividend on Monday, October 26th. Investors of record on Thursday, December 24th will be paid a dividend of $0.77 per share by the industrial products company on Friday, January 15th. This represents a $3.08 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Thursday, December 24th.

Valmont Industries 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 1 consecutive years. Valmont Industries has a payout ratio of 15.6% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Valmont Industries to earn $26.11 per share next year, which means the company should continue to be able to cover its $3.08 annual dividend with an expected future payout ratio of 11.8%.

Valmont Industries Stock Down 1.6%

NYSE VMI opened at $428.00 on Tuesday. Valmont Industries has a 12 month low of $378.02 and a 12 month high of $585.71. The company has a current ratio of 2.41, a quick ratio of 1.56 and a debt-to-equity ratio of 0.43. The stock has a market cap of $8.26 billion, a PE ratio of 15.89, a P/E/G ratio of 0.98 and a beta of 1.34. The stock's 50 day moving average is $469.97 and its 200 day moving average is $477.13.

Valmont Industries (NYSE:VMI - Get Free Report) last announced its quarterly earnings data on Tuesday, October 20th. The industrial products company reported $6.24 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.70 by $0.54. The business had revenue of $1.10 billion during the quarter, compared to analyst estimates of $1.12 billion. Valmont Industries had a net margin of 12.05% and a return on equity of 26.25%. The company's revenue was up 5.5% on a year-over-year basis. During the same period last year, the firm posted $4.98 EPS. Research analysts predict that Valmont Industries will post 23.27 EPS for the current fiscal year.

Wall Street Analyst Weigh In

VMI has been the subject of several research analyst reports. Weiss Ratings raised shares of Valmont Industries from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. JPMorgan Chase & Co. increased their price objective on shares of Valmont Industries from $600.00 to $620.00 and gave the company an "overweight" rating in a report on Wednesday, July 22nd. Zacks Research lowered Valmont Industries from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 20th. Wall Street Zen upgraded Valmont Industries from a "hold" rating to a "buy" rating in a research report on Saturday. Finally, Stifel Nicolaus increased their price target on Valmont Industries from $645.00 to $678.00 and gave the company a "buy" rating in a research note on Monday, July 20th. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $587.00.

Valmont Industries Company Profile

Valmont Industries, Inc is a global manufacturer of engineered products and services serving the infrastructure and agricultural markets. Founded in 1946 and headquartered in Omaha, Nebraska, the company operates through businesses focused on infrastructure, coatings, and water management.

Its infrastructure products include utility and transmission structures, lighting and traffic poles, highway and transportation structures, and related support systems. Valmont also provides hot-dip galvanizing and other protective coatings designed to extend the service life of steel products used in industrial, infrastructure, and commercial applications.

In agriculture, the company manufactures mechanized irrigation equipment, including center-pivot and linear irrigation systems, as well as agricultural products and services intended to support water conservation and crop production.

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