Gra (GGG) DIvidends Date & History

Key Takeaways

• Graco Inc. (GGG) offers a modest dividend yield of 1.36%, supported by a low payout ratio of 35.7%.
• Quarterly dividend of $0.295 per share, with the most recent ex-dividend date on April 13, 2026, and payment on May 6, 2026.
• 27 consecutive years of quarterly dividend payments, with annual increases averaging 7-8% in recent years.
• Dividend well-covered by earnings (3.7x) and free cash flow exceeding $600 million annually.
• Yield above specialty industrial machinery industry average of approximately 1%, outperforming many peers.
• Low debt and robust financials indicate high sustainability for ongoing payments and potential growth.

Dividend Overview

Graco Inc. (GGG), a leader in fluid handling systems and equipment, maintains a consistent quarterly dividend policy. The current annual dividend stands at $1.18 per share, delivering a yield of 1.36% based on recent stock prices around $86. Payments occur every three months, with the latest declaration of $0.295 per share ex-dividend on April 13, 2026, payable May 6, 2026. This profile positions GGG as a dividend growth stock rather than a high-yield play, emphasizing reliability and gradual increases over aggressive payouts. The company's commitment reflects its stable cash generation from industrial machinery sales, appealing to investors prioritizing income consistency in the Industrials sector.

Dividend History and Growth

Graco has a robust dividend history spanning nearly four decades, with quarterly payments uninterrupted since at least 1999. The company marked its 27th consecutive year of quarterly dividends in 2026, alongside consistent annual hikes. Recent growth includes quarterly raises from $0.235 in 2023 to $0.255 in 2024 (8.5%), $0.275 in 2025 (7.8%), and $0.295 in 2026 (7.3%). This trend underscores a long-term strategy of sharing profits with shareholders while reinvesting in growth, with over 20 years of consecutive increases reported in some analyses.

Dividend Sustainability and Payout Ratio

Graco's dividend sustainability is strong, bolstered by a payout ratio of 35.7%, well below levels signaling risk (typically above 60-70%). Earnings per share of $3.14 comfortably cover the $1.18 annual dividend at over 2.6x, while operating cash flow of $683.6 million provides 3.7x coverage. Free cash flow (FCF) reached $637.9 million in 2025, leaving ample room after dividends for reinvestment or acquisitions, with $454.6 million excess. Minimal debt (virtually none long-term) and high margins further enhance stability, positioning the payout for continued growth absent economic disruptions.

Dividend Compared to Industry Peers

In the specialty industrial machinery industry, Graco's 1.36% yield exceeds the sector average of about 0.78-1%. Peers like Nordson Corp. (NDSN) yield around 1.02%, W.W. Grainger (GWW) 1.39%, and Illinois Tool Works (ITW) higher at 2.3%. While not the highest, GGG's combination of yield, growth streak, and superior coverage outperforms many in payout safety and consistency, making it competitive for income-focused investors in Industrials.

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Is This Stock Attractive for Dividend Investors?

Graco Inc. (GGG) suits dividend growth investors seeking modest yields with proven longevity and safety. Its 27-year payment streak and 7%+ annual hikes appeal to those prioritizing compounding income over high immediate payouts, akin to Dividend Aristocrats in Industrials. Conservative investors may value the low 35.7% payout ratio, 3.7x cash flow coverage, and debt-free balance sheet, offering resilience in cyclical sectors. Long-term holders benefit from alignment with steady industrial demand for fluid management equipment. However, yield trails ultra-high payers like some utilities, potentially limiting appeal for pure income seekers. Overall, it fits portfolios balancing growth potential and reliable dividends without excessive risk.

Disclaimer

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