Graham Co. (NYSE:GHM) Increases Dividend to $0.11 Per Share

Graham Co. (NYSE:GHM) announced a quarterly dividend on Wednesday, August 7th, NASDAQ reports. Investors of record on Wednesday, August 21st will be given a dividend of 0.11 per share by the industrial products company on Wednesday, September 4th. This represents a $0.44 annualized dividend and a dividend yield of 2.27%. The ex-dividend date of this dividend is Tuesday, August 20th. This is a boost from Graham’s previous quarterly dividend of $0.10.

Graham has raised its dividend payment by an average of 5.9% annually over the last three years. Graham has a payout ratio of 169.2% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Graham to earn $0.96 per share next year, which means the company should continue to be able to cover its $0.44 annual dividend with an expected future payout ratio of 45.8%.

GHM stock opened at $19.36 on Friday. The company has a market capitalization of $196.92 million, a PE ratio of 37.96 and a beta of 0.76. Graham has a 12-month low of $18.62 and a 12-month high of $28.98. The business’s fifty day moving average price is $20.28 and its 200 day moving average price is $20.79.

Graham (NYSE:GHM) last posted its quarterly earnings data on Friday, July 26th. The industrial products company reported $0.10 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.05 by $0.05. The firm had revenue of $20.59 million for the quarter, compared to the consensus estimate of $19.19 million. Graham had a positive return on equity of 3.61% and a negative net margin of 3.08%. Sell-side analysts expect that Graham will post 0.79 EPS for the current fiscal year.

Several research firms recently issued reports on GHM. Ascendiant Capital Markets began coverage on Graham in a report on Monday, April 22nd. They issued a “buy” rating and a $1.59 price objective on the stock. Maxim Group restated a “buy” rating and set a $25.00 price target on shares of Graham in a report on Friday, July 26th. Zacks Investment Research upgraded Graham from a “hold” rating to a “strong-buy” rating and set a $23.00 price target on the stock in a report on Wednesday, August 7th. Finally, ValuEngine downgraded Graham from a “buy” rating to a “hold” rating in a report on Wednesday, August 7th. One equities research analyst has rated the stock with a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus price target of $16.53.

About Graham

Graham Corporation, together with its subsidiaries, designs, manufactures, and supplies vacuum and heat transfer equipment for the chemical, defense, petrochemical, petroleum refining, electric power generation, and other industries worldwide. It offers heat transfer equipment, including surface condensers, heliflows, water heaters, and various types of heat exchangers, as well as custom-engineered ejectors; and vacuum equipment, such as steam jet ejector vacuum systems and liquid ring vacuum pumps.

Further Reading: Quick Ratio

Dividend History for Graham (NYSE:GHM)

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