"Brady's dividend is backed by substantial earnings cushion. Against trailing twelve month diluted earnings per share of $4.10, the $0.965 annual dividend represents a payout ratio of just 23.5%. This leaves more than three-quarters of earnings available for reinvestment, debt management, or future dividend growth. In Q1 fiscal 2026, Brady generated $33.4 million in operating cash flow, spent $11.0 million on capital expenditures, and paid $11.5 million in dividends. Free cash flow of $22.4 million covered the dividend 1.9x."
"Brady operates with minimal leverage. As of Q1 fiscal 2026, the company held $182.7 million in cash against total debt of $176.8 million, including $60.9 million in lease obligations. Excluding leases, debt-to-equity stands at just 0.11x. The company reported a net cash position of $49.3 million as of April 30, 2025. With shareholders' equity of $1.24 billion and total assets of $1.79 billion, Brady maintains a fortress balance sheet. Return on equity of 16.7% and profit margins of 12.7% demonstrate efficient capital deployment."
Brady Corporation manufactures identification solutions and workplace safety products for industrial customers worldwide and pays an annual dividend of $0.965 per share yielding 1.19%. The dividend has increased for 40 consecutive years, with the most recent quarterly payment raised to $0.245 and five-year growth averaging 3.8%. The payout ratio is 23.5% based on $4.10 diluted EPS, leaving substantial earnings available for reinvestment. In Q1 fiscal 2026, Brady generated $33.4 million in operating cash flow and $22.4 million in free cash flow after $11.0 million of capital expenditures, covering dividends 1.9x. Cash exceeded total debt, producing a net cash position and low leverage.
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