Lennox Bumps Up Quarterly Dividend By 19%

Lennox International (LII) announced an increased quarterly cash dividend of $0.92 per share, up 19% from the prior payout. The provider of climate control products for the heating, ventilation, air conditioning, and refrigeration markets had previously increased its quarterly dividend by 20% to $0.77 in June 2019.

Don't Miss our Black Friday Offers:

Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter

Lennox announced that the new dividend will be paid on July 15 to shareholders of record as of June 30.

The company’s annual dividend of $3.68 per share now reflects a dividend yield of 1.09%.

In April, Lennox reported Q1 results. The company’s Q1 earnings more than quadrupled on a year-over-year basis to $2.27 per share and outpaced Street estimates of $1.26. Revenue jumped 29% to $931 million and came in well ahead of analysts’ expectations of $786.51 million. For 2021, the company expects adjusted EPS to be in the range of $11.40 – $12.00. (See Lennox stock analysis on TipRanks)

On April 27, Barclays analyst Julian Mitchell increased the stock’s price target to $340 from $315 and reiterated a Hold rating following the company’s Q1 earnings results.

Mitchell views the company’s revised guidance as conservative.

The rest of the Street is bearish on the stock with a Moderate Sell consensus rating. That’s based on 7 Holds and 3 Sells. The average analyst price target of $323.80 implies 4.4% downside potential to current levels. Shares have increased 15% over the past six months.