Xylem Inc. Plans Quarterly Dividend of $0.40 (NYSE:XYL)

Xylem Inc. (NYSE:XYL) announced a quarterly dividend on Thursday, May 15th, Wall Street Journal reports. Shareholders of record on Thursday, May 29th will be paid a dividend of 0.40 per share by the industrial products company on Thursday, June 26th. This represents a $1.60 dividend on an annualized basis and a yield of 1.26%. The ex-dividend date is Thursday, May 29th.

Xylem has raised its dividend payment by an average of 8.7% annually over the last three years and has increased its dividend every year for the last 2 years. Xylem has a payout ratio of 30.8% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Xylem to earn $5.22 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 30.7%.

Xylem Stock Up 1.2%

Shares of NYSE:XYL opened at $126.98 on Friday. The business’s 50 day moving average is $117.10 and its 200 day moving average is $121.43. Xylem has a 12-month low of $100.47 and a 12-month high of $146.08. The stock has a market cap of $30.90 billion, a price-to-earnings ratio of 34.69, a PEG ratio of 2.33 and a beta of 1.10. The company has a quick ratio of 1.33, a current ratio of 1.76 and a debt-to-equity ratio of 0.19.

Xylem (NYSE:XYL) last issued its quarterly earnings data on Tuesday, April 29th. The industrial products company reported $1.03 earnings per share for the quarter, beating the consensus estimate of $0.95 by $0.08. Xylem had a return on equity of 9.96% and a net margin of 10.40%. The business had revenue of $2.07 billion for the quarter, compared to analysts’ expectations of $2.04 billion. During the same period last year, the business earned $0.90 EPS. The business’s revenue was up 1.8% on a year-over-year basis. On average, sell-side analysts forecast that Xylem will post 4.65 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Xylem

An institutional investor recently raised its position in Xylem stock. AQR Capital Management LLC grew its holdings in Xylem Inc. (NYSE:XYL) by 14.4% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 30,955 shares of the industrial products company’s stock after purchasing an additional 3,900 shares during the period. AQR Capital Management LLC’s holdings in Xylem were worth $3,645,000 at the end of the most recent quarter. Institutional investors and hedge funds own 87.96% of the company’s stock.

Analyst Ratings Changes

A number of analysts recently commented on the company. Citigroup decreased their price target on Xylem from $152.00 to $134.00 and set a “buy” rating for the company in a research report on Monday, April 14th. Robert W. Baird decreased their target price on Xylem from $149.00 to $146.00 and set an “outperform” rating for the company in a research report on Wednesday, April 30th. Stifel Nicolaus boosted their price target on shares of Xylem from $140.00 to $141.00 and gave the stock a “buy” rating in a report on Wednesday, April 30th. Finally, Royal Bank of Canada raised their price objective on shares of Xylem from $143.00 to $147.00 and gave the stock an “outperform” rating in a report on Wednesday, April 30th. Two research analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $146.88.

About Xylem

Xylem Inc, together with its subsidiaries, engages in the design, manufacture, and servicing of engineered products and solutions worldwide. It operates through four segments: Water Infrastructure, Applied Water, Measurement & Control Solutions, and Integrated Solutions and Services. The Water Infrastructure segment offers products, including water, storm water, and wastewater pumps; controls and systems; filtration, disinfection, and biological treatment equipment; and mobile dewatering equipment and rental services under the ADI, Flygt, Godwin, Sanitaire, Magneto, Neptune Benson, Ionpure, Leopold, Wedeco, and Xylem Vue brands.