Agilent (A) To Reward Shareholders With 14.8% Dividend Hike
Zacks Investment Research | Nov 20, 2016 09:57PM ET
Agilent Technologies Inc. (NYSE:A) , a broad-based OEM of test and measurement equipment, recently raised the quarterly dividend to 13.2 cents per share from 11.5 cents, representing approximately 14.8% hike.
The new dividend will be paid on Jan 25, 2017 to shareholders of record as of Jan 3.
The strength of Agilent’s business model is reflected in its strong cash generation capabilities and commitment to return value to shareholders. We believe that consistent increase in dividends will inspire investors’ loyalty.
Agilent’s strong balance sheet and cash flows provide the financial flexibility required for dividend hikes, share repurchases and strategic acquisitions. During full fiscal 2016, the company distributed $150 million in cash dividend and repurchased $434 million of shares. At the end of the fourth quarter, cash and short-term investments balance was $2.29 billion compared with $2.20 billion in the prior quarter. Also, the company generated $234 million in operating cash flow.
We are encouraged by the company’s strong cash position and ability to service its long-term debts.
Agilent delivered strong fourth-quarter results with both the bottom and top line surpassing the Zacks Consensus Estimate. The company’s decision to divest or wind up underperforming businesses has enhanced focus on the new Agilent, while enabling management to expand the solid recurring revenue base and diversify geographic and industrial operations to achieve growth. Also, the company’s focus on aligning investment toward more attractive growth avenues and innovative product launches is a positive.
However, uncertain macro conditions, particularly in the U.S. and Europe remain as major concerns. Nevertheless, the company seems prepared to counter the impact of foreign currency headwinds on revenues and profits.
AGILENT TECH Price
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.