Lennox International, Inc. (NYSE:LII) Raises Dividend to $1.36 Per Share

Key Points

• Lennox International raised its quarterly dividend to $1.36 per share from $1.30, a 4.6% increase. The dividend is payable on July 15 to shareholders of record on June 30, with an indicated yield of about 1.1%.
• The company has 16 straight years of annual dividend increases and a relatively low payout ratio of 20.6%, suggesting the dividend remains well covered by earnings. Analysts also expect continued coverage based on next year’s earnings estimates.
• Lennox International beat quarterly earnings and revenue expectations, reporting $3.35 EPS versus $3.16 expected and revenue of $1.14 billion versus $1.07 billion expected. Management also issued FY2026 EPS guidance of $23.50 to $25.00.

Lennox International, Inc. (NYSE:LII - Get Free Report) declared a quarterly dividend on Thursday, May 21st. Shareholders of record on Tuesday, June 30th will be paid a dividend of 1.36 per share by the construction company on Wednesday, July 15th. This represents a c) annualized dividend and a yield of 1.1%. The ex-dividend date is Tuesday, June 30th. This is a 4.6% increase from Lennox International's previous quarterly dividend of $1.30.

Lennox International has increased its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 16 consecutive years. Lennox International has a payout ratio of 20.6% indicating that its dividend is sufficiently covered by earnings. Analysts expect Lennox International to earn $26.58 per share next year, which means the company should continue to be able to cover its $5.20 annual dividend with an expected future payout ratio of 19.6%.

Lennox International Trading Down 2.6%

Shares of LII stock opened at $480.38 on Friday. Lennox International has a 12 month low of $434.06 and a 12 month high of $689.44. The company has a quick ratio of 0.64, a current ratio of 1.57 and a debt-to-equity ratio of 0.94. The business's 50 day moving average is $489.05 and its two-hundred day moving average is $502.68. The company has a market cap of $16.72 billion, a PE ratio of 21.62, a price-to-earnings-growth ratio of 1.89 and a beta of 1.22.

Lennox International (NYSE:LII - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The construction company reported $3.35 EPS for the quarter, beating the consensus estimate of $3.16 by $0.19. Lennox International had a return on equity of 73.27% and a net margin of 14.89%.The company had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.07 billion. During the same quarter last year, the company posted $3.63 earnings per share. The company's revenue for the quarter was up 5.8% compared to the same quarter last year. Lennox International has set its FY 2026 guidance at 23.500-25.000 EPS. Equities analysts predict that Lennox International will post 24.28 EPS for the current year.

Insider Buying and Selling at Lennox International

In related news, Director Shane D. Wall sold 100 shares of the firm's stock in a transaction on Wednesday, February 25th. The stock was sold at an average price of $540.01, for a total value of $54,001.00. Following the completion of the transaction, the director directly owned 2,205 shares of the company's stock, valued at $1,190,722.05. This trade represents a 4.34% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Chris Kosel sold 971 shares of the firm's stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $544.80, for a total value of $529,000.80. Following the completion of the transaction, the chief accounting officer directly owned 1,090 shares of the company's stock, valued at approximately $593,832. This trade represents a 47.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 9.80% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of LII. Bank of New York Mellon Corp lifted its holdings in shares of Lennox International by 10.2% during the fourth quarter. Bank of New York Mellon Corp now owns 203,539 shares of the construction company's stock valued at $98,835,000 after acquiring an additional 18,901 shares during the period. Ameriprise Financial Inc. grew its holdings in shares of Lennox International by 18.5% in the 3rd quarter. Ameriprise Financial Inc. now owns 85,096 shares of the construction company's stock worth $45,043,000 after purchasing an additional 13,281 shares during the last quarter. BNP Paribas Financial Markets grew its holdings in shares of Lennox International by 3.5% in the 3rd quarter. BNP Paribas Financial Markets now owns 67,766 shares of the construction company's stock worth $35,873,000 after purchasing an additional 2,276 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. increased its position in shares of Lennox International by 0.7% during the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 62,868 shares of the construction company's stock worth $29,179,000 after purchasing an additional 420 shares in the last quarter. Finally, SG Americas Securities LLC increased its position in shares of Lennox International by 78.0% during the 1st quarter. SG Americas Securities LLC now owns 56,797 shares of the construction company's stock worth $26,361,000 after purchasing an additional 24,893 shares in the last quarter. 67.07% of the stock is owned by institutional investors.

About Lennox International

Lennox International Inc is a global manufacturer of climate control products and services, principally serving residential and commercial heating, ventilation and air conditioning (HVAC) markets. The company designs, engineers and produces a range of products including furnaces, air conditioners, heat pumps, air handlers, packaged rooftop units and related controls and indoor air quality equipment. Lennox also supplies aftermarket parts and accessories and supports its product lines with technical service, training and warranty programs for dealer and distribution partners.

Originally founded in 1895 by Dave Lennox, the company has grown from its early roots into a multinational business with operations concentrated in North America and a presence in other international markets.

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