Kennametal Announces $0.20 Dividend, Earnings Growth Expected to Cover Payments

Kennametal Inc. has announced a dividend of $0.20 per share, increasing the dividend yield to 2.1%. The company's stock price has risen 47% in the last 3 months. Earnings per share are expected to grow by 54.6% next year, and the payout ratio could be 36%, which is sustainable. Kennametal has a solid track record of stable dividend payments and has seen EPS rising for the last five years at 9.9% per annum. The company is positioning itself well to grow earnings and dividends in the future.