After the announcement of a 19% increase in quarterly dividend and a new share repurchase program, share prices of Ingersoll-Rand Plc (IR) have increased by 1.4% to 58.06 at the close of trading on Feb 6. Ingersoll has increased the quarterly dividend from 21 cents to 25 cents per share, which is payable on Mar 31, 2014 to shareholders of record on Mar 14.
Additionally, Ingersoll approved a new $1.5 billion share repurchase program, which is likely to start in the second quarter of 2014 after the completion of its existing $2.0 billion share repurchase program.
Ingersoll has consistently returned significant cash to its shareholders through share repurchase and dividends. In the last three years, the company has returned more than $4 billion to shareholders.
Ingersoll continues to focus on strategic priorities which include a disciplined capital allocation; strong and flexible balance sheet position and cash flow enhancement to support dividend growth. The company continues to deliver sustainable increases in sales benefiting from its long-term strategy of accelerating investment in high-growth programs.
Headquartered in Dublin, Ireland, Ingersoll designs, manufactures, sells and services a diverse portfolio of industrial and commercial products across the globe. The company has a solid foundation of global brands and leading market share in all major product lines. The geographic and industrial diversity coupled with a large installed product base provides ample growth opportunities for the company within service, spare parts and replacement revenue streams.
Ingersoll currently has a Zacks Rank #4 (Sell). Other stocks that look promising and are worth considering in the industry include Altra Industrial Motion Corp. (AIMC), Barnes Group Inc. (B) and Gorman-Rupp Co. (GRC), each carrying a Zacks Rank #2 (Buy).
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