Xylem Inc. (NYSE:XYL) Raises Dividend to $0.43 Per Share

Xylem Inc. (NYSE:XYL) announced a quarterly dividend on Tuesday, February 10th. Stockholders of record on Tuesday, February 24th will be paid a dividend of 0.43 per share by the industrial products company on Tuesday, March 24th. This represents a c) annualized dividend and a dividend yield of 1.3%. The ex-dividend date is Tuesday, February 24th. This is a 7.5% increase from Xylem’s previous quarterly dividend of $0.40.

Xylem has increased its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 2 years. Xylem has a payout ratio of 31.0% meaning its dividend is sufficiently covered by earnings. Research analysts expect Xylem to earn $5.22 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 30.7%.

Xylem Stock Down 7.9%

XYL opened at $129.17 on Wednesday. The firm has a market cap of $31.45 billion, a P/E ratio of 33.21, a PEG ratio of 1.99 and a beta of 1.17. The business’s fifty day simple moving average is $139.27 and its 200 day simple moving average is $142.22. Xylem has a 52 week low of $100.47 and a 52 week high of $154.27. The company has a quick ratio of 1.50, a current ratio of 1.96 and a debt-to-equity ratio of 0.17.

Xylem (NYSE:XYL) last announced its earnings results on Tuesday, February 10th. The industrial products company reported $1.42 earnings per share for the quarter, meeting the consensus estimate of $1.42. Xylem had a net margin of 10.66% and a return on equity of 10.77%. The firm had revenue of $2.40 billion during the quarter, compared to the consensus estimate of $2.37 billion. During the same quarter in the previous year, the company posted $1.18 EPS. The firm’s revenue for the quarter was up 6.3% on a year-over-year basis. Xylem has set its FY 2026 guidance at 5.350-5.560 EPS. As a group, equities research analysts anticipate that Xylem will post 4.65 EPS for the current fiscal year.

Wall Street Analyst Weigh In

XYL has been the topic of a number of analyst reports. Barclays decreased their target price on shares of Xylem from $172.00 to $166.00 and set an “overweight” rating on the stock in a research report on Wednesday, January 7th. Wall Street Zen lowered Xylem from a “buy” rating to a “hold” rating in a research note on Saturday, December 27th. Stifel Nicolaus lifted their price objective on Xylem from $175.00 to $178.00 and gave the company a “buy” rating in a research report on Wednesday, October 29th. TD Cowen reiterated a “hold” rating on shares of Xylem in a research note on Friday, December 5th. Finally, Robert W. Baird set a $178.00 price target on Xylem in a research note on Wednesday, October 29th. Nine investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, Xylem has an average rating of “Moderate Buy” and an average price target of $165.80.

Xylem Company Profile

Xylem Inc (NYSE: XYL) is a global water technology company that designs, manufactures and services engineered systems and equipment for the transport, treatment, testing and efficient use of water. Its product portfolio spans pumps and pumping systems, valves, filtration and disinfection equipment, sensors and analytical instruments, and digital solutions for monitoring and control of water infrastructure. Xylem serves the full water cycle with offerings for water and wastewater utilities, industrial customers, commercial and residential buildings, and agricultural applications.

The company was established as an independent publicly traded company in 2011 following a corporate spin-off from ITT Corporation and is headquartered in Rye Brook, New York.