Donaldson Rewards Shareholders With 6.7% Dividend Increase

In a shareholder-friendly move, Donaldson Company, Inc. DCI has announced a hike in its dividend payout. The company increased its quarterly dividend 6.7% to 32 cents per share (annually: $1.28). The new dividend will be paid out on June 30, 2026, to shareholders of record as of June 15.

The move underscores DCI’s sound financial health as it utilizes free cash flow to enhance its shareholders’ returns. This marks Donaldson’s 30th consecutive year of annual dividend increase. It has been paying dividends every quarter for the last 70 years. Prior to this, it had hiked its dividend 11.1% to 30 cents per share in May 2025.

Strong cash flows allow Donaldson to effectively deploy capital for making acquisitions, repurchasing shares and paying out dividends. Dividend payments totaled $69.3 million in the first six months of fiscal 2026 (ended January 2026) and $131.9 million in fiscal 2025 (ended July 2025). The company bought back shares worth $108.6 million in the first six months of fiscal 2026 and $333.6 million in fiscal 2025. We believe such disbursements highlight the company’s operational strength and commitment to enhancing shareholders’ wealth.

DCI’s Zacks Rank & Price Performance

Donaldson is benefiting from higher volume in the aftermarket business, driven by positive market trends and the impact of expanded market share within the Mobile Solutions segment. Persistent strength in the filtration solutions business is aiding DCI’s Industrial Solutions segment. However, weakness in the on-road business remains a concern.

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In the past year, this Zacks Rank #3 (Hold) company’s shares have gained 18% compared with the industry’s 29.4% growth.

The Zacks Consensus Estimate for DCI’s fiscal 2027 (ending July 2026) earnings has been stable at $3.97 per share over the past 60 days.

Stocks to Consider

Some better-ranked companies are discussed below:

CECO Environmental CECO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CECO delivered a trailing four-quarter average earnings surprise of 46.5%. In the past 60 days, the Zacks Consensus Estimate for CECO Environmental’s 2026 earnings has increased 17.2%.

Helios Technologies HLIO presently sports a Zacks Rank of 1. Helios has a trailing four-quarter average earnings surprise of 15.7%.

The Zacks Consensus Estimate for HLIO’s 2026 earnings has increased 4% in the past 60 days.

RBC Bearings RBC presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 6.2%.

In the past 60 days, the consensus estimate for RBC’ fiscal 2027 (ending March 2027) earnings has increased 0.5%.

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This article originally published on Zacks Investment Research (zacks.com).

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