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Pentair Rewards Shareholders With 9% Hike in Quarterly Dividend

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Pentair Plc (PNR - Free Report) announced a 9% hike in the quarterly dividend payout, marking its 49th consecutive year of a dividend increase. This is in sync with PNR’s long-standing commitment to returning capital to shareholders.

Details of PNR’s Quarterly Dividend Hike

Pentair will pay the new quarterly dividend of 25 cents on Feb. 7, 2025, to shareholders of record as of Jan. 24, 2025. The raised dividend takes the company’s dividend yield from the current 0.85% to 0.92%. 

PNR has a three-year dividend growth rate of 4.8%. It has a payout ratio of 22.3%.

Pentair’s Peer Dividend Performance

PNR’s industry peer Select Water Solutions, Inc. (WTTR - Free Report) pays a quarterly dividend of 7 cents. WTTR has a payout ratio of 42.4%.

Then again, Republic Services, Inc. (RSG - Free Report) has a quarterly dividend of 58 cents. The company has a three-year dividend growth rate of 5.2%. RSG has a payout ratio of 26.3%.

Waste Connections, Inc. (WCN - Free Report) has a quarterly dividend of 32 cents. The company has a three-year dividend growth rate of 11.6%. WCN has a payout ratio of 24.7%.

Pentair’s Cash Position & Balance Sheet

PNR had cash and cash equivalents of around $218 million at the end of the third quarter of 2024 compared with $170 million at 2023-end. Net cash generated from operating activities was $680.4 million in the first nine months of the current year compared with $502.3 million in the prior-year period. Pentair had a long-term debt of $1.63 billion as of Sept. 30, 2024, down from $1.99 billion as of Dec. 31, 2023.

Over the past five years, the company has generated a free cash flow of more than $2 billion. PNR has a long-term target to consistently generate free cash flow greater than 100% of net income.

Pentair restarted share repurchases in the first quarter of 2024 and bought back 1.2 million shares so far in 2024. As of Sept. 30, 2024, the company had $500 million available for share repurchases under this authorization.

PNR Stock’s Price Performance

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

The Pentair stock has gained 55.4% over the past year compared with the industry’s growth of 20.6%.

Pentair’s Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.

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