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

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

Timken has raised its dividend payment by an average of 4.8% annually over the last three years and has raised 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 Trading Up 0.4 %

NYSE:TKR traded up $0.32 during mid-day trading on Friday, reaching $89.49. 408,980 shares of the company’s stock traded hands, compared to its average volume of 516,739. Timken has a 12-month low of $65.71 and a 12-month high of $95.08. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.87 and a quick ratio of 0.96. The company has a 50 day moving average price of $86.12 and a 200-day moving average price of $79.96. The firm has a market capitalization of $6.30 billion, a price-to-earnings ratio of 17.05, a PEG ratio of 1.20 and a beta of 1.51.

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

Analyst Ratings Changes

Several equities analysts recently issued reports on TKR shares. 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. Oppenheimer reissued an “outperform” rating and issued a $100.00 target price (up previously from $97.00) on shares of Timken in a research report on Thursday, March 21st. Morgan Stanley initiated coverage on Timken in a research report on Monday, January 8th. They set an “equal weight” rating and a $74.00 price target on the stock. DA Davidson started coverage on Timken in a report on Tuesday, January 23rd. They issued a “buy” rating and a $92.00 price objective for the company. Finally, The Goldman Sachs Group boosted their target price on shares of Timken from $78.00 to $87.00 and gave the company a “neutral” rating in a report on Tuesday, February 6th. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average 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.