Ingersoll Rand (IR) DIvidends Date & History

Key Takeaways

• Ingersoll Rand (IR) pays a quarterly dividend of $0.02 per share, equating to an annual payout of $0.08 and a current yield of 0.10%.
• The dividend has remained flat at $0.02 quarterly since at least November 2021, with no recent increases or cuts.
• Payout ratio stands at a low 5.52%, indicating exceptional earnings coverage for sustainability.
• Trailing twelve-month levered free cash flow (FCF, cash generated after capital expenditures) of $1.08 billion provides robust support for the modest dividend.
• Yield trails the industrial sector average of around 1.5%, positioning IR as a low-yield but secure payer.
• Next ex-dividend date is May 14, 2026, with payment on June 4, 2026.

Dividend Overview

Ingersoll Rand (IR), a leader in mission-critical flow creation and industrial solutions, maintains a modest dividend policy characterized by a low yield and high sustainability. The company currently offers an annual dividend of $0.08 per share, delivered quarterly at $0.02 per share, yielding approximately 0.10% based on a recent stock price around $84. This positions IR neither as a high-yield stock nor a dividend growth contender, but rather as a conservative payer prioritizing capital for growth and acquisitions in the industrial machinery sector. The most recent declaration on April 23, 2026, confirms the ongoing $0.02 quarterly rate, payable June 4, 2026, to shareholders of record by May 14, 2026. With a payout ratio of just 5.52%, the dividend enjoys ample room for potential future expansion amid strong operational cash flows.

Dividend History and Growth

Since initiating its quarterly dividend at $0.02 per share in late 2021—following its 2020 spin-off from legacy operations—Ingersoll Rand has maintained a consistent payment schedule without increases or reductions. Over 18 consecutive quarters through early 2026, IR has paid exactly $0.02 each time, reflecting a stable but flat dividend profile. Key dates include ex-dividend on March 4, 2026 (paid March 26), and November 13, 2025. There is no established dividend growth streak, as the payout has not risen amid the company's focus on reinvesting in expansion, such as recent acquisitions. This approach aligns with IR's long-term strategy of balancing shareholder returns with growth in precision and industrial technologies.

Dividend Sustainability and Payout Ratio

Ingersoll Rand's dividend sustainability is exceptionally strong, underpinned by a trailing payout ratio of 5.52%—meaning only a tiny fraction of earnings is distributed as dividends. This leaves vast coverage from earnings, with trailing twelve-month operating cash flow at $1.36 billion and levered FCF at $1.08 billion, far exceeding the annual dividend obligation of roughly $32 million (based on shares outstanding). Debt levels are manageable, with total debt/equity (ratio of total debt to shareholders' equity) at 50.70% and $1.26 billion in cash reserves. A current ratio (short-term assets to liabilities) of 2.06 further bolsters financial stability. These metrics suggest the dividend is over-covered and resilient even in economic downturns, with significant capacity for growth if management prioritizes it.

Dividend Compared to Industry Peers

Ingersoll Rand's 0.10% yield lags significantly behind the industrial machinery sector average of approximately 1.49% and broader industrials at 1.5-1.8%. Peers like Illinois Tool Works (ITW) offer 2.24%, while AMETEK (AME) yields 0.53%—still higher than IR. Honeywell (HON) and others average around 1-2%, highlighting IR's below-average profile. However, its ultra-low payout ratio outperforms many peers' 30-60% ranges, emphasizing quality over quantity for income seekers.

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Is This Stock Attractive for Dividend Investors?

Ingersoll Rand (IR) appeals to conservative dividend investors prioritizing sustainability over high income, given its minuscule 0.10% yield but unmatched coverage metrics. Those focused on total return—combining modest dividends with potential capital appreciation from industrial growth—may find it suitable, as the company generates substantial FCF for reinvestment amid a stable payout history. Long-term holders in the machinery sector, tolerant of low yields in exchange for low risk and balance sheet strength, could view IR favorably. However, high-yield seekers or those requiring aggressive dividend growth will likely look elsewhere, as IR trails peers like ITW in yield. Balanced portfolios emphasizing quality industrials might allocate modestly, weighing sector cyclicality against IR's defensive dividend profile.

Disclaimer

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