Raven Industries Inc. (RAVN) announced that its board of directors has approved an increase of 12.5% in its regular quarterly dividend, being the 25th consecutive enhancement in its dividend payment.
Raven will now pay 18 cents per share to its shareholders, 2 cents more than the previous dividend of 16 cents per share. The increased dividend will be paid on April 15, 2011, to shareholders of record as on March 31, 2011.
Raven has a long history of paying increased dividends to its shareholders. The company last increased its dividend on May 20, 2010, from 14 cents to 16 cents. Even during the last quarter the company paid a special dividend of $1.25 per share in addition to the regular quarterly dividend of 16 cents. The company returned approximately $34 million cash to shareholders through these two dividends.
Raven recently reported strong fiscal 2010 results, delivering an EPS of $2.24, surpassing the Zacks Estimate of $2.18 and prior-year EPS of $1.58. Raven’s revenue surged 32% substantially to $314.7 million, striding ahead of the Zacks Estimate of $305 million and year-earlier revenue of $237.8 million.
Raven possessed a cash balance of $38.6 million as of January 31, 2011, declining from $43.7 million as of January 31, 2010. The cash balance dipped solely due to the payment of special dividend of $1.25 per share in September 2010. The company also reported $42.1 million of cash from operating activities, which decreased from $47.6 million in fiscal 2009, due to working capital requirements.
Raven continues to believe that the farm income will drive its performance in fiscal 2011, with customers and farmers turning more and more to the company’s cost-effective products. The company also plans to bring two new blown-film extruders on line in fiscal 2011.
Raven currently retains a Zacks #2 Rank (short-term Buy rating).
South Dakota-based Raven Industries Inc. is an industrial manufacturer providing a variety of products for the agricultural, industrial, construction and military/aerospace markets. The company operates through four business segments: Engineered Films, Electronic Systems, Applied Technology and Aerostar. Graco Inc. (GGG) and Spartech Corp. (SEH) are the two close competitors of Raven.
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