GLEN ALLEN, Va. - Hamilton Beach Brands Holding Company (NYSE:HBB) announced today that its Board of Directors has approved a 4.5% increase in its regular quarterly cash dividend. The new dividend rate will be $0.115 per share, up from the previous $0.11 per share.
This enhanced dividend will be distributed on June 14, 2024, to shareholders of record at the close of business on May 31, 2024. It applies to both Class A and Class B Common Stock.
Hamilton Beach Brands Holding Company is known for its design, marketing, and distribution of a wide variety of branded small electric household and specialty housewares appliances. Its commercial products are also widely used in restaurants, fast food chains, bars, and hotels. Among the company's well-known consumer brands are Hamilton Beach®, Proctor Silex®, and TrueAir®, while its commercial products are marketed under Hamilton Beach Commercial® and Proctor Silex Commercial®.
The company also holds licenses for several other brands, including Wolf Gourmet® countertop appliances and CHI® premium garment care products. Additionally, it has exclusive agreements to design, market, and distribute other innovative products such as Bartesian® cocktail makers and Numilk® plant-based milk makers.
In a strategic move to expand its reach in the home health market, Hamilton Beach Brands' subsidiary, Hamilton Beach Health, acquired HealthBeacon in February 2024. HealthBeacon is a medical technology firm that specializes in connected devices which assist patients in managing chronic conditions that require injectable medications at home.
InvestingPro Insights
Following the recent announcement by Hamilton Beach Brands Holding Company (NYSE:HBB) regarding the increase in its quarterly dividend, a look at the company's financial metrics offers additional insights. With a market capitalization of $289.7M and a P/E ratio standing at 10.02, the company presents a value-oriented profile that could be attractive to investors seeking stable income through dividends. Notably, the dividend yield as of the latest data stands at 2.03%, reflecting a solid return for income-focused investors.
An InvestingPro Tip that stands out for Hamilton Beach Brands is its commendable track record of raising its dividend for 7 consecutive years, which aligns with the latest dividend increase announcement. Moreover, the company has maintained dividend payments for 8 consecutive years, illustrating a consistent approach to rewarding shareholders. This consistency in dividend payments is underpinned by the company's strong free cash flow yield, as indicated by another InvestingPro Tip, suggesting that its cash flows are robust enough to support such shareholder-friendly actions.
For investors interested in further analysis and additional InvestingPro Tips, the platform offers a total of 12 tips for Hamilton Beach Brands Holding Company, which can be accessed at https://www.investing.com/pro/HBB. To enrich your investment decision-making process, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
Finally, the InvestingPro Fair Value estimate for Hamilton Beach Brands is currently at $24.46 USD, which suggests potential upside from the previous close price of $21.7 USD. This valuation, along with the company's strategic initiatives such as the acquisition of HealthBeacon and its product diversification, may offer a holistic view for shareholders and potential investors evaluating the company's prospects.
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