Eaton Co. plc (NYSE:ETN) Plans $0.94 Quarterly Dividend

Eaton Co. plc (NYSE:ETN) announced a quarterly dividend on Wednesday, July 24th, RTT News reports. Shareholders of record on Monday, August 5th will be given a dividend of 0.94 per share by the industrial products company on Friday, August 23rd. This represents a $3.76 dividend on an annualized basis and a yield of 1.23%.

Eaton has increased its dividend by an average of 5.6% annually over the last three years and has increased its dividend every year for the last 15 years. Eaton has a payout ratio of 31.9% meaning its dividend is sufficiently covered by earnings. Analysts expect Eaton to earn $11.82 per share next year, which means the company should continue to be able to cover its $3.76 annual dividend with an expected future payout ratio of 31.8%.

Eaton Stock Performance

Shares of ETN stock traded down $15.67 on Wednesday, hitting $306.27. 1,564,706 shares of the stock were exchanged, compared to its average volume of 2,017,785. The firm’s 50 day moving average is $324.47 and its two-hundred day moving average is $302.93. Eaton has a one year low of $191.82 and a one year high of $345.19. The firm has a market capitalization of $122.45 billion, a PE ratio of 38.00, a P/E/G ratio of 2.68 and a beta of 1.02. The company has a current ratio of 1.56, a quick ratio of 1.05 and a debt-to-equity ratio of 0.42.

Eaton (NYSE:ETN) last issued its earnings results on Tuesday, April 30th. The industrial products company reported $2.40 earnings per share for the quarter, topping analysts’ consensus estimates of $2.28 by $0.12. Eaton had a net margin of 14.38% and a return on equity of 20.69%. The firm had revenue of $5.94 billion during the quarter, compared to analyst estimates of $5.91 billion. During the same quarter last year, the business earned $1.88 earnings per share. The company’s quarterly revenue was up 8.4% on a year-over-year basis. Sell-side analysts expect that Eaton will post 10.56 earnings per share for the current fiscal year.

Insider Transactions at Eaton

In related news, insider Peter Denk sold 2,416 shares of Eaton stock in a transaction on Wednesday, May 8th. The shares were sold at an average price of $331.84, for a total value of $801,725.44. Following the transaction, the insider now owns 5,086 shares in the company, valued at approximately $1,687,738.24. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 0.53% of the company’s stock.

Wall Street Analyst Weigh In

ETN has been the topic of several recent research reports. Royal Bank of Canada upgraded Eaton from a “sector perform” rating to an “outperform” rating and increased their target price for the stock from $286.00 to $371.00 in a research report on Friday, April 5th. Raymond James initiated coverage on Eaton in a report on Friday, June 28th. They set an “outperform” rating and a $375.00 price objective on the stock. Argus lifted their target price on Eaton from $290.00 to $350.00 and gave the company a “buy” rating in a report on Thursday, May 2nd. HSBC upped their price target on Eaton from $240.00 to $280.00 and gave the company a “hold” rating in a research report on Friday, May 3rd. Finally, Wolfe Research restated an “underperform” rating and issued a $312.00 price objective on shares of Eaton in a research report on Monday, April 8th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and fourteen have assigned a buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $323.06.

About Eaton

Eaton Corporation plc operates as a power management company worldwide. The company's Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems.