Rockwell Automation Boosts Dividend

Rockwell Increases Shareholder Payout

Rockwell Automation (NYSE:ROK) announced a dividend increase. The board approved the new payout. Shareholders will receive $1.38 on December 10th. This payment is 5.3% higher than last year’s. Last year's payment was $1.31 for the same period. This raises the annual payment. Now it represents 1.4% of the current stock price. Unfortunately, this yield trails the industry average.

Strong Earnings Support Dividend Growth

Dividend yield is important, but feasibility matters more. We must check payout level sustainability. Rockwell Automation easily covered the last dividend. Earnings amply supported the payment. Therefore, the company retains significant earnings. This funding helps grow the business operations. Analysts expect EPS to jump 57.2% next year. The payout ratio could become 42% by 2026. This level appears quite sustainable going forward.

Consistent Track Record Demonstrates Reliability

The company maintains a solid payment history. Rockwell shows very little dividend fluctuation. For example, the annual payment was $2.60 in 2015. The most recent full-year payment hit $5.24. This means distributions grew about 7.3% yearly. The dividend has been growing very nicely. It has consistently delivered strong income to shareholders.

Future Growth Looks Very Appealing

Investors enjoy receiving steady dividend income. We are encouraged by Rockwell's EPS growth. Earnings per share grew 5.3% yearly for five years. Shareholders receive a solid return of earnings. This strong return combines with robust growth. This combination makes the stock highly attractive.

Rockwell Dividend Remains Highly Attractive

Overall, we believe this is a strong income stock. It improves its appeal by paying a higher dividend. Earnings easily cover distributions. Furthermore, earnings convert well to cash flows. Considering all these factors, this presents a good dividend opportunity.