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Flexsteel (FLXS) Increases Dividend by 13% to Reward Investors

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Flexsteel Industries, Inc. (FLXS - Free Report) announced a hike of more than 13% in its quarterly cash dividend. The largest manufacturer, importer, and marketer of residential furniture products will pay out a quarterly dividend of 17 cents per share on Oct. 7, 2024, to shareholders on record as of Sept. 25.

The company currently has a dividend payout ratio of 28% and a dividend yield of 1.5%, based on the closing share price of $39.80 on Sept. 10. This marks the company’s 331st consecutive quarterly cash dividend.

With the recent move, FLXS is maintaining its commitment to increase stockholders’ returns. The dividend increase reflects FLXS’ sound and stable financial position and commitment to rewarding shareholders amid industry-wide challenges.

What’s Driving FLXS’ Growth?

Flexsteel has been paying cash dividends for decades. It has been consistently sharing its cash flows with shareholders and maintaining a strong financial position. The company ended fourth-quarter fiscal 2024 (ended June 30, 2024) with cash and cash equivalents of $4.8 million compared with $3.4 million at fiscal 2023-end. The company has sufficient funds to meet the short-term obligation of $7.52 million. Operating lease liabilities, net of the current portion, at June-end, was $58.1 million, down from $65 million at fiscal 2023-end.

Additionally, cash provided by operating activities was $31.9 million for fiscal 2024 compared with $23 million a year ago. This reflects improved levels of cash flow for the year.

Investors always prefer a return-generating stock. A high-dividend-yielding one is much coveted. It goes without saying that stockholders are always on the lookout for companies with a track record of consistent and incremental dividend payments.

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Shares of the company have skyrocketed 111.1% so far this year compared with the industry‘s 23.4% growth. FLXS has effectively managed its operations. It has capitalized on sustained productivity and cost-saving measures, maintained pricing discipline, and actively managed its product portfolio to its advantage. The company is expected to benefit from its growth strategy and new product introductions.

Despite ongoing challenges in the industry, primarily stemming from changes in consumer spending preferences away from home furnishings, the company expects net sales growth of 5-10% year over year in the first quarter of fiscal 2025. The same is expected to rise 2-6% in fiscal 2025. Read more: (Flexsteel Q4 Earnings and Sales Beat Estimates, Up Y/Y)

FLXS' Zacks Rank & Key Picks

FLXS currently carries a Zacks Rank #3 (Hold).

Grand Canyon Education, Inc. (LOPE - Free Report) , currently carrying a Zacks Rank #2 (Buy), has been benefiting from online, as well as hybrid enrollment growth. The online platform continues to perform well, attributed to the introduction of 148 new programs, many of which address current labor market needs such as healthcare and cybersecurity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

LOPE has seen an upward estimate revision for 2024 earnings to $7.98 per share from $7.80 over the past 60 days. This company’s earnings for 2024 are expected to register 13.4% growth from a year ago.

Stride, Inc. (LRN - Free Report) , currently carrying a Zacks Rank #2, has been gaining from higher enrollment, expanding product offerings and Middle - High School learning growth. Consistent demand for online learning options has been benefiting Stride’s top line in recent times.

LRN has seen an upward estimate revision for fiscal 2025 earnings to $5.05 per share from $5.02 over the past 60 days. The company’s earnings for fiscal 2025 are expected to grow 7.7%.

Lincoln Educational Services Corporation (LINC - Free Report) , currently carrying a Zacks Rank #2, has been gaining from transformational growth strategies, which align with rising public interest in alternative education pathways and employer demand for skilled labor amid a workforce skills gap. Strategic expansions, corporate partnerships, and the innovative Lincoln 10.0 platform are driving positive momentum.

LINC has seen an upward estimate revision for 2024 earnings to 51 cents per share from 48 cents over the past 30 days. This company’s earnings for 2024 are expected to register 4.1% growth from a year ago.

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