The Timken Company (NYSE:TKR) to Issue Dividend Increase – $0.34 Per Share

The Timken Company (NYSE:TKR) announced a quarterly dividend on Friday, May 3rd, Zacks reports. Shareholders of record on Tuesday, May 14th will be paid a dividend of 0.34 per share by the industrial products company on Tuesday, May 28th. This represents a $1.36 annualized dividend and a yield of 1.52%. The ex-dividend date is Monday, May 13th. This is a boost from Timken’s previous quarterly dividend of $0.33.

Timken has increased its dividend by an average of 4.8% per year over the last three years and has increased its dividend annually for the last 4 consecutive years. Timken has a payout ratio of 19.2% indicating that its dividend is sufficiently covered by earnings. Analysts expect Timken to earn $6.86 per share next year, which means the company should continue to be able to cover its $1.32 annual dividend with an expected future payout ratio of 19.2%.

Timken Price Performance

TKR traded up $0.32 during trading on Friday, hitting $89.49. The company’s stock had a trading volume of 408,980 shares, compared to its average volume of 516,739. The company has a quick ratio of 0.96, a current ratio of 1.87 and a debt-to-equity ratio of 0.66. The stock has a market capitalization of $6.30 billion, a price-to-earnings ratio of 17.05, a price-to-earnings-growth ratio of 1.20 and a beta of 1.51. The firm’s 50 day moving average price is $86.12 and its two-hundred day moving average price is $79.96. Timken has a 12 month low of $65.71 and a 12 month high of $95.08.

Timken (NYSE:TKR) last issued its quarterly earnings results on Tuesday, April 30th. The industrial products company reported $1.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.50 by $0.27. Timken had a net margin of 7.99% and a return on equity of 17.98%. The business had revenue of $1.19 billion for the quarter, compared to the consensus estimate of $1.15 billion. During the same quarter in the prior year, the company earned $2.09 EPS. The firm’s quarterly revenue was down 5.7% on a year-over-year basis. Sell-side analysts forecast that Timken will post 6.18 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

TKR has been the subject of several analyst reports. DA Davidson assumed coverage on shares of Timken in a research report on Tuesday, January 23rd. They set a “buy” rating and a $92.00 price target for the company. Evercore ISI cut shares of Timken from an “outperform” rating to an “in-line” rating and set a $84.00 price target on the stock. in a research report on Tuesday, February 20th. StockNews.com downgraded Timken from a “buy” rating to a “hold” rating in a research note on Wednesday, February 21st. Morgan Stanley assumed coverage on Timken in a report on Monday, January 8th. They issued an “equal weight” rating and a $74.00 price target for the company. Finally, Loop Capital boosted their price objective on Timken from $78.00 to $87.00 and gave the company a “hold” rating in a research report on Wednesday. One research analyst has rated the stock with a sell rating, seven have issued a hold rating and four have issued a buy rating to the company’s stock. According to MarketBeat, Timken currently has a consensus rating of “Hold” and a consensus target price of $87.09.

About Timken

The Timken Company designs, manufactures, and sells engineered bearings and industrial motion products, and related services in the United States and internationally. The company's Engineered Bearings segment provides various bearing products, including tapered, spherical, and cylindrical roller bearings; plain bearings, metal-polymer bearings, and rod end bearings; radial, angular, and precision ball bearings; thrust and specialty ball bearings; journal bearings; and housed or mounted bearings.