MINNEAPOLIS - Tennant Company (NYSE: TNC), a global provider of cleaning solutions, announced today that its Board of Directors has approved a 5.4% increase in its quarterly cash dividend. The new dividend of $0.295 per share is scheduled to be paid on December 16, 2024, to shareholders of record as of November 29, 2024.
This marks the 53rd consecutive year that Tennant has raised its dividend, underscoring the company's commitment to shareholder returns. "Our strong balance sheet and solid free cash flow position enable us to consistently grow our dividend and return capital to shareholders," said Dave Huml, President and CEO of Tennant Company.
The company's history of dividend payments extends back 80 years, reflecting a long-term strategy of financial stability and shareholder value. Tennant's performance has been supported by a comprehensive product line that includes equipment for maintaining surfaces in various environments, sustainable cleaning technologies, and a broad range of cleaning tools and supplies.
With a global field service network touted as the most extensive in the industry, Tennant reported sales of $1.24 billion in 2023 and employs approximately 4,500 people worldwide. The company maintains manufacturing operations across the globe and markets its products in over 120 countries.
The information regarding the dividend increase is based on a press release statement from Tennant Company.
In other recent news, Tennant Company has reported a solid Q2 growth for 2024, with net sales rising by 2.9% to reach $331 million. Despite a decrease in GAAP net income to $27.9 million, the company saw a slight increase in adjusted net income to $35.2 million. The company is on track to reduce its backlog significantly by the end of 2024 and has raised its full-year net sales outlook.
Tennant Company's enterprise growth strategy includes pricing, new product development, and mergers and acquisitions (M&A), with over 800 target companies in its active pipeline. The company expects slightly higher net sales for the full year 2024 and is actively pursuing M&A opportunities that align with its core business and growth strategy.
Despite volume declines primarily in the EMEA and APAC regions, sales in the Americas saw net volume growth. The company is prepared to make quick M&A moves when the right opportunity arises, demonstrating its strong financial leverage. These are some of the recent developments shaping Tennant Company's performance and strategy.
InvestingPro Insights
Tennant Company's commitment to shareholder value is further highlighted by recent data from InvestingPro. The company's market capitalization stands at $1.7 billion, reflecting its significant presence in the cleaning solutions industry. Notably, Tennant's revenue for the last twelve months as of Q2 2024 reached $1.26 billion, with a growth rate of 6.49%, indicating steady expansion in line with the company's reported 2023 sales.
InvestingPro Tips reveal that Tennant has not only raised its dividend for 31 consecutive years but has also maintained dividend payments for an impressive 54 consecutive years. This consistency aligns perfectly with the company's announcement of its 53rd consecutive year of dividend increases, demonstrating a long-standing dedication to returning value to shareholders.
The company's financial health appears robust, with InvestingPro data showing that Tennant operates with a moderate level of debt and its liquid assets exceed short-term obligations. This financial stability supports the company's ability to continue its dividend growth strategy, as mentioned by CEO Dave Huml.
For investors seeking a deeper understanding of Tennant's financial position and future prospects, InvestingPro offers 8 additional tips, providing a comprehensive analysis to inform investment decisions.
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