Flowserve Boosts Dividend: A Sign of Strength and Confidence

Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services, has announced a quarterly cash dividend of $0.21 per share. This marks a 5% increase from the previous dividend of $0.20 per share, demonstrating the company's strong financial performance and confidence in its future prospects. The dividend is payable on October 11, 2024, to shareholders of record as of the close of business on September 27, 2024.

Flowserve's decision to raise its dividend comes amidst a backdrop of improving market conditions and robust investor sentiment. The company's recent earnings report showed a 3.5% year-over-year increase in revenues, driven by strong operational performance and meaningful improvements in margins, EPS, and cash flow. Additionally, Flowserve generated $1.2 billion in bookings during the quarter, including a healthy mix of project awards, strong aftermarket activity, and record bookings from its 3D strategic initiatives.

The dividend increase reflects Flowserve's commitment to rewarding shareholders while maintaining a strong financial position. The company's payout ratio is approximately 30%, indicating that it retains a significant portion of its earnings for reinvestment in the business. This balance between dividend payout and reinvestment allows Flowserve to maintain a strong financial position while rewarding shareholders with consistent dividends.

Flowserve's dividend growth rate has been steady, with a 5-year CAGR of 5.2%. While this is slightly lower than the average of its peers (5.7%) and the broader market (5.8%), Flowserve's dividend yield of 1.36% is higher than its peers' average of 1.2% and the market's average of 1.1%. This suggests that Flowserve offers a more attractive income stream compared to its peers and the broader market.



Flowserve's ability to increase its dividend reflects its strong financial performance and confidence in its future prospects. The company's recent earnings report showed a 3.5% year-over-year increase in revenues, driven by strong operational performance and meaningful improvements in margins, EPS, and cash flow. Additionally, Flowserve generated $1.2 billion in bookings during the quarter, including a healthy mix of project awards, strong aftermarket activity, and record bookings from its 3D strategic initiatives.



In conclusion, Flowserve's decision to raise its quarterly cash dividend to $0.21 per share is a sign of strength and confidence in the company's future prospects. The dividend increase reflects the company's strong financial performance and commitment to rewarding shareholders while maintaining a strong financial position. As the company continues to grow and innovate, investors can expect Flowserve to remain a reliable source of income and a solid investment opportunity.