WESTLAKE, Ohio – Nordson (NASDAQ:) Corporation (NASDAQ:NDSN) has raised its quarterly cash dividend by 15%, continuing a 61-year streak of annual dividend increases. The new dividend, which has been increased to $0.78 per common share from $0.68, is scheduled to be paid on September 10, 2024, to shareholders on record as of August 27, 2024.
This milestone places Nordson among a select group of publicly traded companies with a long history of consistent dividend growth. Executive Vice President and Chief Financial Officer Daniel Hopgood attributed this achievement to the company’s sustained profitability and cash flow, which he said were bolstered by Nordson’s customer-centric approach, innovation, and the Ascend strategy.
According to Hopgood, these factors enable the company to generate reliable cash flows and provide value to its shareholders as part of a balanced capital deployment strategy.
Nordson Corporation, established in 1954 and headquartered in Westlake, Ohio, specializes in precision technology. The company’s scalable growth framework and division-led organization aim to achieve top-tier growth with high margins and returns.
Nordson’s direct sales model and applications expertise cater to a global customer base across diverse markets, including consumer non-durables, medical, electronics, and industrial sectors. With operations and support offices in over 35 countries, Nordson maintains a significant international presence.
The information in this article is based on a press release statement from Nordson Corporation.
In other recent news, Nordson Corporation has announced plans to acquire Atrion Corporation, a strategic move that aligns with Nordson’s long-term growth trajectory, particularly in the medical sector. The deal, valued at approximately $800 million, is expected to significantly increase Nordson’s presence in the medical equipment industry, representing about 26% of Nordson’s pro forma sales.
Despite Atrion’s recent sales decrease of 8% and a drop in EBITDA margin from 29% to 23%, Nordson anticipates a high single-digit growth in 2024 and aims to improve margin recovery. The acquisition is expected to yield approximately $14 million in synergies within 24 months post-acquisition, with savings coming from a reduction in public company costs and improvements in supply chain and production efficiencies.
Following this announcement, Nordson maintained its Buy rating and a $295.00 price target, reflecting confidence in the company’s strategic direction and the anticipated financial benefits of the Atrion acquisition.
However, Loop Capital left Nordson’s shares target unchanged at $255.00, despite a reduced forecast for fiscal year 2024 due to ongoing weakness in the electronics markets and a downturn in demand for agricultural products. On the other hand, Baird adjusted its price target for Nordson shares from $303.00 to $272.00, maintaining its Outperform rating on the stock.
These developments are part of Nordson’s recent activities and are worth noting for investors interested in the company’s strategic direction and financial performance.
InvestingPro Insights
Nordson Corporation’s (NASDAQ:NDSN) impressive track record of dividend growth is supported by robust financial metrics that reflect the company’s strong market position and operational efficiency. With a market capitalization of $13.6 billion, Nordson stands out in the industry.
The company’s commitment to shareholder returns is evident not only in the dividend increase but also in its financial stability. Nordson’s gross profit margin for the last twelve months as of Q2 2024 stands at an impressive 55.01%, showcasing the company’s ability to maintain profitability.
InvestingPro Tips reveal that Nordson has not only raised its dividend for 31 consecutive years but has also maintained dividend payments for an impressive 45 years in a row, underlining the company’s financial resilience and commitment to its shareholders. Moreover, Nordson’s liquid assets exceed its short-term obligations, providing further evidence of the company’s solid financial foundation. For investors looking for more insights, there are 8 additional InvestingPro Tips available that can provide a deeper understanding of Nordson’s financial health and market standing.
Key financial data further highlights Nordson’s performance. The company’s P/E ratio, as of the last twelve months leading up to Q2 2024, is 28.12, reflecting investor confidence in its earnings potential. Meanwhile, the dividend yield as of the same period is 1.15%, which, combined with a history of dividend growth—most recently a 4.62% increase—signals a reliable income stream for investors. Lastly, Nordson’s share price is currently at 84.98% of its 52-week high, suggesting a potential upside for those considering an investment in the company.
For more detailed analysis and additional InvestingPro Tips on Nordson Corporation, interested parties can visit https://www.investing.com/pro/NDSN.
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