"Kadant Inc. (KAI) delivered its latest quarterly dividend of $0.34 per share on February 5, 2026, marking another consistent payment in the industrial machinery supplier's decade-long dividend growth streak. With shares currently trading at $339.74, the modest 0.4% yield might raise eyebrows among income-focused investors-but this dividend scorecard reveals a more nuanced story about capital allocation in a high-growth industrial."
"The payout ratio sits at a conservative 15.9%, calculated from the $1.36 annual dividend against trailing twelve-month earnings of $8.54 per share. This leaves substantial room for future increases while allowing the company to reinvest heavily in growth initiatives-a strategic choice reflected in Kadant's 11.3% return on equity and expanding market position in specialty industrial machinery."
"Kadant has increased its dividend for 10+ consecutive years, with the quarterly payment climbing from $0.125 in 2013 to today's $0.34-a 172% total increase over that span. The 10-year compound annual growth rate of approximately 9.2% significantly outpaces inflation and demonstrates management's commitment to returning value even as the company pursues acquisitions and capacity expansion."
Kadant paid $0.34 per share on February 5, 2026, amounting to a $1.36 annual dividend from four quarterly payments. The annual dividend rose 6.25% versus 2024, continuing mid-single-digit increases for over a decade. The payout ratio is 15.9% based on $8.54 trailing twelve-month earnings, leaving substantial room for future increases while enabling heavy reinvestment. Return on equity stands at 11.3% and the company is expanding its position in specialty industrial machinery. Dividend CAGR over ten years is about 9.2% despite recent moderation tied to a 12.3% quarterly earnings decline and flat revenue growth.
Read at 24/7 Wall St.
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