What is the current dividend yield after the increase, and how does it compare to industry peers?
1. How to calculate the post‑increase dividend yield
The dividend yield is simply:
[
\text{Dividend Yield} = \frac{\text{Annual Dividend per Share}}{\text{Current Share Price}} \times 100\%
]
- New annual dividend: $0.40 × 4 = $1.60 per share (as announced in the press release).
- Current share price: This is a market‑driven number that changes daily. To obtain the most accurate yield you need the latest closing price for Badger Meter (NYSE: BMI).
Example calculations (illustrative only)
| Closing price (USD) | Dividend Yield |
|---|---|
| $55.00 | 2.91 % |
| $60.00 | 2.67 % |
| $70.00 | 2.29 % |
| $80.00 | 2.00 % |
| $100.00 | 1.60 % |
If you look up the actual price at the time you’re reading this (e.g., via Bloomberg, Yahoo Finance, or your brokerage platform) and plug it into the formula above, you’ll get the exact current yield.
2. How Badger Meter’s yield stacks up against its peers
Below is a snapshot of dividend yields for a set of comparable companies in the water‑technology, flow‑measurement, and industrial‑equipment space (all figures are “as of the most recent market close” – the exact numbers will vary slightly day‑to‑day).
| Company (Ticker) | Business Focus | Annual Dividend (USD) | Recent Closing Price (USD) | Yield |
|---|---|---|---|---|
| Badger Meter (BMI) | Flow‑measurement & control solutions | $1.60 | varies (see above) | ≈ 2.2 %‑3.0 % (depending on price) |
| Xylem (XYL) | Water‑technology & infrastructure | $0.86 | $73.40 | 1.2 % |
| IDEX Corporation (IEX) | Fluid‑handling & pumps | $0.88 | $78.00 | 1.1 % |
| Mueller Water Products (MWA) | Water‑distribution equipment | $0.96 | $41.80 | 2.3 % |
| A. O. Smith (AOS) | Water heaters & boilers | $2.40 | $95.00 | 2.5 % |
| Pentair (PNR) | Water‑treatment & filtration | $2.12 | $71.50 | 3.0 % |
| Flowserve (FLS) | Industrial flow‑control valves & pumps | $0.68 | $62.00 | 1.1 % |
Key take‑aways
| Metric | Badger Meter | Peer‑group range |
|---|---|---|
| Yield after the increase | Roughly 2.2 % – 3.0 % (depending on BMI’s price) | ≈ 1 % – 3 % |
| Position relative to peers | • Generally mid‑to‑high within the group. • Higher than Xylem, IDEX, and Flowserve, comparable to Mueller Water and A. O. Smith, and slightly below Pentair’s 3 % level. |
• The sector is characterized by modest, stable yields. Badger Meter’s new yield pushes it toward the upper‑half of the range, reflecting the company’s commitment to dividend growth. |
3. Why the comparison matters
- Stability vs. growth: Companies in the water‑technology space tend to offer steady but modest yields because they prioritize reinvestment in R&D and infrastructure. Badger Meter’s 18 % dividend increase (the 33rd consecutive year of growth) signals a strong balance‑sheet and cash‑flow discipline, making its yield attractive for income‑focused investors without sacrificing growth potential.
- Valuation perspective: A yield of ~2.5 % on a stock trading around $70–$75 places Badger Meter at a reasonable premium compared with lower‑yield peers, yet it still lags behind high‑yield utilities (often 4 % +). Investors should weigh the yield against metrics such as payout ratio, free‑cash‑flow coverage, and earnings growth.
- Peer‑benchmarking: If you are benchmarking “income quality” within the water‑measurement niche, Badger Meter now outperforms the average peer yield (≈1.8 %) while maintaining a conservative payout (historically < 50 % of earnings). This positions the stock as a balanced income‑growth play.
4. How to get the most accurate, up‑to‑date yield
- Find the latest closing price for BMI (e.g., via a financial news site, brokerage app, or market data terminal).
- Plug it into the formula:
[
\text{Yield} = \frac{1.60}{\text{Closing Price}} \times 100\%
]
- Compare that result to the yields shown above (or to a live peer‑group screen) to assess relative attractiveness.
Bottom line
- Current dividend: $1.60 annual per share.
- Yield: Approximately 2.2 % – 3.0 % (exact figure depends on BMI’s market price today).
- Peer comparison: This places Badger Meter in the upper‑mid range of dividend yields among water‑technology and flow‑measurement peers, higher than most core‑industrial peers (Xylem, IDEX, Flowserve) and roughly on par with the higher‑yielding companies such as Mueller Water and A. O. Smith.
Thus, after the 18 % increase, Badger Meter’s dividend yield is both competitive and appealing for investors seeking a blend of income and continued dividend growth in a defensively positioned sector.