CHICAGO - Industrial supply company W.W. Grainger, Inc. (NYSE: GWW) has raised its quarterly cash dividend by 10%, marking a significant return to its shareholders. The increased dividend of $2.05 per share is scheduled for payment on June 1, 2024, to shareholders on record as of May 13, 2024.
Alongside the dividend increase, Grainger's board has also authorized a new share repurchase program, which allows for the buyback of up to 5 million shares of its common stock. This new plan supersedes the previous repurchase authorization and notably does not have an expiration date.
As of the end of the previous year, Grainger reported approximately 49.3 million shares of common stock outstanding. The company's Chairman and CEO, D.G. Macpherson, commented on the announcement, highlighting the dual benefit of investing in the company's growth while rewarding shareholders. He emphasized that the move aligns with Grainger's history of consistent dividend growth, now entering its 53rd consecutive year.
W.W. Grainger, Inc. is recognized as a leading distributor in the broad line segment with a strong presence in North America, Japan, and the United Kingdom. The company's 2023 sales reached $16.5 billion, driven by a diverse range of maintenance, repair, and operating (MRO) products and services.
Grainger operates through two business models: the High-Touch Solutions segment, offering technical support and inventory management, and the Endless Assortment segment, which provides a vast selection of products through its online platforms Zoro.com and MonotaRO.com.
This financial strategy reinforces Grainger's commitment to delivering value to its shareholders and investing in its long-term business objectives. The information reported here is based on a press release statement from W.W. Grainger, Inc.
InvestingPro Insights
W.W. Grainger, Inc. (NYSE: GWW) has recently demonstrated a strong commitment to shareholder returns with its latest dividend increase. This move is complemented by robust financial metrics and a history of consistent performance. According to InvestingPro data, Grainger boasts a market capitalization of $47.28 billion, which underscores its substantial presence in the industry.
The company's P/E ratio stands at 26.11, reflecting investor confidence in its earnings potential. Furthermore, Grainger's revenue growth over the last twelve months has been a healthy 8.21%, indicating a solid trajectory in its business operations.
InvestingPro Tips highlight that Grainger has raised its dividend for 31 consecutive years, showcasing its ability to maintain and grow shareholder value over time. Additionally, the company is a prominent player in the Trading Companies & Distributors industry, which may provide a level of stability and resilience against market volatility.
For investors looking to delve deeper into the company's performance and potential, there are additional tips available on InvestingPro. For instance, there are insights on how Grainger's cash flows can sufficiently cover interest payments, which is a positive sign of financial health.
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As Grainger navigates through the fiscal year, investors and stakeholders can look forward to the next earnings date on April 25, 2024, to gauge the company's performance and strategic direction. With a solid history of dividend payments and a strategic approach to growth and shareholder returns, Grainger continues to be a company to watch in the industrial supply sector.
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