Timken Company (The) (NYSE:TKR) to Issue Dividend Increase – $0.36 Per Share

Timken Company (The) (NYSE:TKR) announced a quarterly dividend on Friday, May 8th. Shareholders of record on Tuesday, May 19th will be paid a dividend of 0.36 per share by the industrial products company on Friday, May 29th. This represents a c) dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Tuesday, May 19th. This is a 2.9% increase from Timken’s previous quarterly dividend of $0.35.

Timken has increased its dividend by an average of 0.0%per year over the last three years and has raised its dividend every year for the last 12 years. Timken has a dividend payout ratio of 23.0% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Timken to earn $6.62 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 21.1%.

Timken Stock Up 1.4%

Shares of TKR traded up $1.63 during midday trading on Friday, reaching $117.97. The stock had a trading volume of 831,505 shares, compared to its average volume of 816,959. The company has a market cap of $8.23 billion, a price-to-earnings ratio of 26.81, a PEG ratio of 1.74 and a beta of 1.18. The company’s fifty day simple moving average is $104.05 and its two-hundred day simple moving average is $93.67. Timken has a 1-year low of $67.14 and a 1-year high of $123.67. The company has a debt-to-equity ratio of 0.60, a current ratio of 2.88 and a quick ratio of 1.47.

Timken (NYSE:TKR) last issued its earnings results on Wednesday, May 6th. The industrial products company reported $1.67 EPS for the quarter, topping analysts’ consensus estimates of $1.50 by $0.17. Timken had a net margin of 6.60% and a return on equity of 11.84%. The firm had revenue of $1.23 billion during the quarter, compared to the consensus estimate of $1.17 billion. During the same quarter in the previous year, the firm posted $1.40 earnings per share. The company’s revenue was up 8.0% compared to the same quarter last year. Timken has set its FY 2026 guidance at 5.750-6.250 EPS. Equities research analysts expect that Timken will post 5.9 earnings per share for the current year.

Analyst Ratings Changes

A number of research analysts have recently commented on TKR shares. DA Davidson increased their price objective on Timken from $86.00 to $108.00 and gave the company a “neutral” rating in a report on Tuesday, February 10th. JPMorgan Chase & Co. raised their target price on Timken from $100.00 to $110.00 and gave the stock an “underweight” rating in a research report on Thursday. Citigroup raised their target price on Timken from $125.00 to $140.00 and gave the stock a “buy” rating in a research report on Thursday. KeyCorp raised their target price on Timken from $130.00 to $140.00 and gave the stock an “overweight” rating in a research report on Thursday. Finally, Morgan Stanley reissued an “overweight” rating and set a $125.00 target price on shares of Timken in a research report on Friday. Five research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Timken presently has a consensus rating of “Hold” and a consensus price target of $115.88.

Timken Company Profile

The Timken Company is a global manufacturer specializing in engineered bearings and mechanical power transmission products. Its core offerings include tapered and cylindrical roller bearings, spherical and plain bearings, mounted bearing units, and precision gear drives. Timken’s products serve a broad range of industries, from industrial machinery and aerospace to automotive, rail, wind energy and heavy equipment.

Beyond bearings, Timken’s portfolio extends to industrial chains, belts, couplings and related components designed to optimize power transmission systems.