Zurn Elkay Water Solutions Declares Quarterly Cash Dividend

Rhea-AI Summary

Zurn Elkay Water Solutions Corporation (NYSE: ZWS) has declared a quarterly common stock dividend of $0.08 per share, payable in cash on March 7, 2024 to stockholders of record as of February 20, 2024.

Insights

Financial Analyst

The declaration of a quarterly common stock dividend of $0.08 per share by Zurn Elkay Water Solutions Corporation is a direct reflection of the company's current financial health and its ability to generate positive cash flow. From a financial analyst's perspective, this move can be seen as a signal of confidence from the company's Board of Directors in its ongoing profitability and financial stability.

Dividend distributions are often used by companies to return value to shareholders and the consistency of these payments can be a key indicator of a company's financial resilience. In evaluating the implications for stakeholders, it is important to consider the dividend yield, which is calculated by dividing the annual dividends per share by the stock price. If the yield is in line with or higher than industry averages, it may attract income-focused investors.

However, it is crucial to analyze the payout ratio, the proportion of earnings paid out as dividends to shareholders. An excessively high ratio could indicate that the company is not reinvesting enough in its own growth, which could impact long-term value creation. Conversely, a sustainable payout ratio can suggest a balanced approach between rewarding shareholders and funding future expansion.

Market Research Analyst

As a market research analyst, it is essential to contextualize the dividend announcement within the broader industry trends. The water solutions sector is typically characterized by steady demand, given the essential nature of water infrastructure products and services. This can translate into relatively predictable revenue streams for companies like Zurn Elkay Water Solutions Corporation, enabling such firms to maintain regular dividend payments.

Furthermore, the market's reaction to dividend announcements can be indicative of investor sentiment towards the company. A positive response in the stock price may suggest investor approval of the company's capital allocation strategy, while a neutral or negative reaction could imply concerns about the company's future growth prospects or the sufficiency of the dividend amount.

It is also worth noting that dividend payments can have tax implications for shareholders, influencing the net benefit received from such distributions. Thus, the impact of this dividend announcement may also be evaluated in terms of after-tax returns for the investors.

MILWAUKEE--(BUSINESS WIRE)-- Zurn Elkay Water Solutions Corporation (NYSE: ZWS) announced today that its Board of Directors declared a quarterly common stock dividend of $0.08 per share. The dividend is payable in cash on March 7, 2024 to stockholders of record as of February 20, 2024.

About Zurn Elkay Water Solutions

Headquartered in Milwaukee, Wisconsin, Zurn Elkay Water Solutions is a growth-oriented, pure-play water business that designs, procures, manufactures, and markets what we believe is the broadest sustainable product portfolio of solutions to improve health, hydration, human safety, and the environment. The Zurn Elkay product portfolio includes professional grade water control and safety, water distribution and drainage, drinking water, finish plumbing, hygienic, environmental and site works products for public and private spaces. Visit www.zurnelkay.com for additional information about the Company.

Forward-Looking Statements

Information in this release may involve outlook, expectations, beliefs, plans, intentions, strategies or other statements regarding the future, which are forward-looking statements. These forward-looking statements involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Zurn Elkay Water Solutions Corporation as of the date of the release, and Zurn Elkay Water Solutions Corporation assumes no obligation to update any such forward-looking statements. The statements in this release are not guarantees of future performance, and actual results could differ materially from current expectations. Numerous factors could cause or contribute to such differences. Please refer to “Risk Factors” and “Cautionary Notice Regarding Forward-Looking Statements” in the Company’s Form 10-K for the period ended December 31, 2022 as well as the Company’s annual, quarterly and current reports filed on Forms 10-K, 10-Q and 8-K from time to time with the SEC for a further discussion of the factors and risks associated with the business.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240201658716/en/

Investor Relations:

Dave Pauli, Vice President – Investor Relations

414-223-7770

Media Relations:

Angela Hersil, Vice President – Corporate Communications

855-480-5050

414-808-0199

Corporate.Communications@zurn.com

Source: Zurn Elkay Water Solutions Corporation

FAQ

What is the dividend amount declared by Zurn Elkay Water Solutions Corporation (NYSE: ZWS)?

The company declared a quarterly common stock dividend of $0.08 per share.

When will the dividend be payable to stockholders?

The dividend is payable in cash on March 7, 2024.

Who is eligible to receive the dividend?

Stockholders of record as of February 20, 2024 are eligible to receive the dividend.