The Timken Company (NYSE:TKR) Declares Quarterly Dividend of $0.34

The Timken Company (NYSE:TKR) declared a quarterly dividend on Friday, May 3rd, Zacks reports. Stockholders of record on Tuesday, May 14th will be paid a dividend of 0.34 per share by the industrial products company on Tuesday, May 28th. This represents a $1.36 annualized dividend and a dividend yield of 1.52%. The ex-dividend date of this dividend is Monday, May 13th. This is a positive change from Timken’s previous quarterly dividend of $0.33.

Timken has increased its dividend payment by an average of 4.8% annually over the last three years and has increased its dividend every year for the last 4 years. Timken has a payout ratio of 19.2% meaning its dividend is sufficiently covered by earnings. Analysts expect Timken to earn $6.86 per share next year, which means the company should continue to be able to cover its $1.32 annual dividend with an expected future payout ratio of 19.2%.

Timken Stock Up 0.4 %

NYSE TKR traded up $0.32 on Friday, hitting $89.49. 408,980 shares of the stock traded hands, compared to its average volume of 516,739. The stock has a 50-day moving average of $86.12 and a 200 day moving average of $79.96. Timken has a twelve month low of $65.71 and a twelve month high of $95.08. The company has a market capitalization of $6.30 billion, a P/E ratio of 17.05, a price-to-earnings-growth ratio of 1.20 and a beta of 1.51. The company has a current ratio of 1.87, a quick ratio of 0.96 and a debt-to-equity ratio of 0.66.

Timken (NYSE:TKR) last posted its earnings results on Tuesday, April 30th. The industrial products company reported $1.77 EPS for the quarter, topping the consensus estimate of $1.50 by $0.27. The firm had revenue of $1.19 billion for the quarter, compared to the consensus estimate of $1.15 billion. Timken had a net margin of 7.99% and a return on equity of 17.98%. The business’s quarterly revenue was down 5.7% on a year-over-year basis. During the same period in the prior year, the business posted $2.09 earnings per share. As a group, analysts expect that Timken will post 6.18 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the company. The Goldman Sachs Group raised their price target on Timken from $78.00 to $87.00 and gave the company a “neutral” rating in a research report on Tuesday, February 6th. Evercore ISI cut Timken from an “outperform” rating to an “in-line” rating and set a $84.00 price objective for the company. in a research report on Tuesday, February 20th. Morgan Stanley began coverage on shares of Timken in a research report on Monday, January 8th. They set an “equal weight” rating and a $74.00 target price on the stock. Oppenheimer restated an “outperform” rating and set a $100.00 price objective (up previously from $97.00) on shares of Timken in a report on Thursday, March 21st. Finally, Stifel Nicolaus boosted their price target on Timken from $92.00 to $100.00 and gave the company a “buy” rating in a research note on Wednesday. One investment analyst has rated the stock with a sell rating, seven have issued a hold rating and four have issued a buy rating to the company’s stock. Based on data from MarketBeat, Timken currently has an average rating of “Hold” and an average price target of $87.09.

About Timken

The Timken Company designs, manufactures, and sells engineered bearings and industrial motion products, and related services in the United States and internationally. The company's Engineered Bearings segment provides various bearing products, including tapered, spherical, and cylindrical roller bearings; plain bearings, metal-polymer bearings, and rod end bearings; radial, angular, and precision ball bearings; thrust and specialty ball bearings; journal bearings; and housed or mounted bearings.