Donaldson (DCI) DIvidends Date & History

Key Takeaways

• DCI pays a quarterly dividend of $0.32 per share, for an annual total of $1.28.
• The current dividend yield stands at approximately 1.37% based on recent share prices near $93.
• The company has increased its dividend for 41 consecutive years, reflecting a strong commitment to dividend growth.
• Payout ratio remains low at roughly 34%, indicating ample coverage from earnings and free cash flow.
• Dividend sustainability appears solid given consistent earnings growth and conservative leverage.
• The stock appeals primarily to dividend growth investors seeking modest income with rising payouts over time.

Dividend Overview

Donaldson Company, Inc. (DCI) maintains a straightforward quarterly dividend policy. The firm currently distributes $1.28 annually, or $0.32 per share each quarter, resulting in a yield of about 1.37%. This positions DCI as a dividend growth stock rather than a high-yield name. Payments have been reliable, with the most recent ex-dividend date falling on August 17, 2026, and the corresponding payout scheduled for August 31, 2026. The modest yield reflects a focus on consistent increases supported by stable industrial demand for filtration products.

Dividend History and Growth

Donaldson has raised its dividend annually for 41 consecutive years. Recent increases include the move from $0.30 to $0.32 per quarter in 2026. Over the past five years, the annualized dividend growth rate has averaged around 6-8%. The company has never cut its dividend during this period, demonstrating a long-term strategy of returning capital to shareholders while funding operations and growth initiatives. This track record aligns with the characteristics of a Dividend Aristocrat, though the firm is not formally part of that index.

Dividend Sustainability and Payout Ratio

The payout ratio of approximately 34% leaves substantial room for future increases and provides strong earnings coverage. Free cash flow generation supports dividend payments comfortably, with debt levels remaining manageable relative to earnings. Donaldson’s diversified end markets in mobile, industrial, and life sciences segments contribute to earnings stability, reducing the risk of dividend interruptions even during economic slowdowns. Overall financial metrics point to a sustainable dividend policy.

Dividend Compared to Industry Peers

Within the industrials and specialty machinery sector, DCI’s yield of roughly 1.37% sits slightly above peers such as Caterpillar and Parker-Hannifin, which often trade at yields below 1%. The payout ratio remains competitive and conservative compared with industry averages, emphasizing growth over high current income. This profile differentiates Donaldson from higher-yielding industrial names while offering more growth potential than many low-yield competitors.

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Is This Stock Attractive for Dividend Investors?

Donaldson Company appeals most to dividend growth investors who prioritize consistent annual increases and long-term compounding over high current yields. Conservative investors may value the low payout ratio and earnings stability, while income-focused portfolios might find the modest yield less compelling compared with higher-yielding alternatives. The stock suits long-term holders comfortable with industrials exposure and seeking gradual dividend growth rather than immediate high income. Investors should assess their own risk tolerance and portfolio needs before considering any position.

Disclaimer

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