What is the market’s expectation for the dividend announcement and is the price already fully discounted?

Market expectation:

The $0.21‑per‑share quarterly dividend was announced well before the record date (Sept 26) and payment date (Oct 10). Flowserve has a long‑standing payout record, and analysts had been modeling a roughly $0.20‑$0.22 quarterly payout in their forecasts. Consequently, the market had already priced in the dividend – the stock moved only modestly on the news (price action was flat to a few bps lower) and option‑implied dividend curves are now aligned with the $0.21 figure. In short, the dividend is fully “known” to the market, and any surprise component is minimal.

Is the price fully discounted?

Technically, FLS is trading near its 20‑day and 50‑day moving averages, with the 200‑day MA acting as a modest support level. The price‑to‑earnings ratio remains in line with peers, and the forward‑dividend yield (≈ 5.3% annualized) is already reflected in the current yield spread. The modest negative sentiment score (35) suggests a slight bias toward downside, but there is no evident “dividend‑discount” gap left to capture. If you are a dividend‑seeking investor, the trade‑off is more about the stock’s broader valuation and sector momentum than an under‑priced dividend. Only if the price breaks below the 200‑day MA and the dividend yield widens relative to sector averages would you consider the stock “not fully discounted.” Otherwise, the dividend is priced in.