As investors, we're always on the lookout for companies that offer a combination of growth and stability. Lindsay Corporation (LNN) is one such company that has caught our attention. With a strong track record of dividend growth and a solid business model, Lindsay Corporation is a compelling choice for income-oriented investors. Let's dive into the details and explore why this company is worth considering.



A History of Dividend Growth

Lindsay Corporation has a history of increasing its dividend payments, which is a strong indicator of the company's financial health and growth prospects. The company has paid a dividend every quarter since at least 2009, demonstrating consistency in its dividend policy. The most recent dividend of $0.36 per share, announced on January 10, 2025, is in line with the company's recent payouts and represents a 1.17% yield based on the current stock price of $123.26.



A Strong Business Model

Lindsay Corporation operates in two segments: Irrigation and Infrastructure. The Irrigation segment manufactures and markets center pivot and lateral move irrigation systems, hose reel travelers, chemical injection systems, and other related products. The Infrastructure segment provides road safety and traffic management solutions, including the Road Zipper System, crash cushions, and specialty barriers. This diverse product portfolio allows Lindsay Corporation to tap into multiple markets and reduce its reliance on any single product or customer.

A Robust Financial Performance

Lindsay Corporation's financial performance has been strong, with the company generating revenues of $166 million in the first quarter of fiscal 2025, up from $161 million in the year-ago quarter. The company's earnings per share (EPS) of $1.57 in the first quarter beat the Zacks Consensus Estimate of $1.34, and the company's backlog as of November 30, 2024, was around $168 million compared with roughly $87 million as of November 30, 2023.



Analyst Recommendations

As of the latest data, Lindsay Corporation has a 'buy' recommendation from 2 out of 2 analysts. This positive sentiment from analysts may be further supported by the company's recent dividend announcement, indicating that the company's financial health and growth prospects are strong.

Conclusion

Lindsay Corporation's recent dividend announcement is a positive sign for investors, as it demonstrates the company's commitment to returning value to shareholders and maintaining its market position as a reliable dividend-paying stock. With a history of dividend growth, a strong business model, and robust financial performance, Lindsay Corporation is an attractive choice for income-oriented investors seeking a steady dividend in an uncertain market. As always, it's essential to conduct thorough research and consider your personal financial situation before making any investment decisions.