Badger Meter (BMI) DIvidends Date & History

Key Takeaways

• Badger Meter offers a modest current dividend yield of approximately 1.0%, with an annual payout of $1.60 per share paid quarterly.
• The company boasts an impressive 33-year consecutive dividend growth streak, with recent annual increases like 18% from $1.36 to $1.60.
• A low payout ratio of around 31% ensures strong dividend sustainability, well-covered by earnings and free cash flow.
• Record free cash flow of $169.7 million in 2025 supports ongoing dividend hikes and share repurchases.
• Debt levels are negligible at 1.78% debt-to-equity, bolstering financial stability for income investors.
• Suitable for dividend growth investors seeking consistent raises over high immediate yields.

Dividend Overview

Badger Meter (BMI), a leader in flow measurement and water quality solutions, maintains a disciplined dividend policy emphasizing steady growth. The company pays a quarterly dividend of $0.40 per share, equating to an annual payout of $1.60 and a current yield of about 1.0%. This modest yield reflects BMI's focus as a dividend growth stock rather than a high-yield play. The most recent ex-dividend date was February 27, 2026, with payment on March 13, 2026. With robust earnings growth and a conservative payout approach, Badger Meter prioritizes reinvestment in innovative water technologies while rewarding shareholders reliably.

Dividend History and Growth

Badger Meter has raised its annual dividend rate for 33 consecutive years, a testament to its long-term strategy of shareholder returns amid consistent profitability. Historical annual declarations show accelerating growth: from $0.90 in 2022 to $1.08 in 2023, $1.36 in 2024, and $1.60 in 2025—an 18% increase. Over the past decade, dividends have more than quadrupled, supported by revenue expansion in municipal water products and acquisitions like SmartCover. No cuts have occurred, underscoring payment consistency even through economic cycles.

Dividend Sustainability and Payout Ratio

Badger Meter's dividend is highly sustainable, with a payout ratio of approximately 31%, leaving ample room for growth and reinvestment. Earnings per share (EPS) of $4.79 in 2025 comfortably covers the $1.60 payout, while record free cash flow (FCF) of $169.7 million—120% of net earnings—provides robust coverage. Operating cash flow reached $183.7 million trailing twelve months (TTM), far exceeding dividend obligations. Minimal debt (1.78% debt-to-equity ratio) and $226 million in cash further enhance stability. A current ratio of 3.36 signals strong liquidity, positioning BMI to maintain and grow dividends amid industry demand for water infrastructure.

Dividend Compared to Industry Peers

In the scientific and precision instruments industry, Badger Meter's 1.0% yield is competitive yet modest compared to peers. For instance, IDEX (IEX) offers 1.49%, Emerson Electric around 1.64%, and Watts Water (WTS) about 0.7%, while Itron (ITRI) pays none. Pentair (PNR) yields 1.2%. BMI's superior 33-year growth streak and lower payout ratio distinguish it, appealing to investors prioritizing compounding over immediate income versus higher-yield but slower-growing peers.

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Is This Stock Attractive for Dividend Investors?

Badger Meter appeals primarily to dividend growth investors who value long-term compounding over high current yields. Its 33-year streak of annual increases, backed by double-digit EPS growth (13% in 2025) and expanding margins (20% operating), positions it well for future hikes. Conservative investors may appreciate the pristine balance sheet—no meaningful debt, high FCF conversion, and strong liquidity—reducing payout risk. Income seekers might find the 1.0% yield modest compared to utilities or REITs, but the low 31% payout ratio and water sector tailwinds (e.g., infrastructure upgrades) suggest sustainability. Long-term holders benefit from BMI's niche leadership in essential metering solutions, though growth stock valuation warrants monitoring. Overall, it suits patient portfolios blending growth and income.

Disclaimer

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