Winnebago Hikes Quarterly Dividend by 50%

Winnebago Industries, Inc. (WGO) has raised its quarterly common stock cash dividend by $0.06 per share, or 50%, to $0.18 per share. The dividend will be paid on September 29, 2021, to shareholders of record on September 15, 2021.

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The company engages in the design, development, manufacture and sales of motorized and towable recreation products. (See Winnebago stock charts on TipRanks)

Winnebago also has a share buyback program in place. On October 18, 2017, its board had approved a share repurchase program of up to $70,000. The plan comes with no expiration date. As of May 29, 2021, about $58,761 of repurchase authority remained outstanding.

The Chief Financial Officer of Winnebago, Bryan Hughes, said, “This action further reflects the company’s strong financial position and the sustained appeal of our portfolio of premium outdoor lifestyle brands which leads to a high level of confidence in our future.”

Alongside the dividend hike, Winnebago announced plans to move its corporate headquarters from Forest City in Iowa to Eden Prairie, Minnesota, effective December 1, 2021.

Last month, Robert W. Baird analyst Craig Kennison maintained a Buy rating on the stock with a price target of $85 (23.5% upside potential from current levels).

Kennison expects Winnebago to report earnings of $1.89 per share in the fourth quarter of fiscal 2021.

Based on 5 Buys and 2 Holds, consensus among analysts is a Moderate Buy. The average Winnebago price target stands at $90, which implies upside potential of 30.8% from current levels.

According to TipRanks’ Smart Score system, Winnebago gets a 6 out of 10, which indicates that the stock is likely to perform in line with market averages.