Parker-Hannifin (PH) DIvidends Date & History

Key Takeaways

• Parker-Hannifin (PH) offers a modest forward dividend yield of approximately 0.9%, prioritizing growth over high current income.
• The company has raised its dividend for 70 consecutive fiscal years, one of the longest streaks in the S&P 500.
• Quarterly dividend recently increased 11% to $2.00 per share, payable June 5, 2026 (ex-date May 8, 2026).
• Low payout ratio of 26% ensures strong sustainability, supported by robust free cash flow coverage.
• 5-year dividend growth rate averages 15%, appealing for long-term compounding.
• Financial health includes investment-grade ratings and ample earnings coverage for continued hikes.

Dividend Overview

Parker-Hannifin Corporation (PH), a leader in motion and control technologies, maintains a disciplined dividend policy emphasizing consistent growth. The current quarterly dividend stands at $2.00 per share, equating to an annualized forward payout of $8.00 and a yield of about 0.9% at recent stock prices around $880. Payments occur quarterly, with the next ex-dividend date on May 8, 2026, and payment on June 5, 2026. This marks the 304th consecutive quarterly dividend. While not a high-yield stock, PH is a premier dividend growth stock, having increased its annual payout for 70 straight fiscal years—one of the elite records in the S&P 500. The low yield reflects reinvestment in acquisitions and share repurchases, balancing shareholder returns with operational expansion in aerospace and industrial markets.

Dividend History and Growth

Parker-Hannifin (PH) boasts an exemplary dividend history, with 70 consecutive years of annual increases as of fiscal 2026. The most recent hike, announced April 23, 2026, raised the quarterly dividend 11% from $1.80 to $2.00 per share. Over the past five years, dividends have grown at a compound annual rate of approximately 15%, outpacing many peers. This streak includes 304 straight quarterly payments since 1957. The company's long-term strategy prioritizes compounding shareholder value through reliable hikes, even amid economic cycles, supported by diversified revenue from motion/control systems. No cuts have occurred in modern history, underscoring commitment to this policy.

Dividend Sustainability and Payout Ratio

The dividend's sustainability is robust, with a trailing payout ratio of 26%—well below 50%, leaving ample room for growth or reinvestment. Earnings per share (EPS) of around $27 comfortably cover the $8.00 annual dividend multiple times. Free cash flow (FCF, cash from operations after capital expenditures) of $3.37 billion in fiscal 2025 provides over twice the dividend obligation. Debt-to-equity remains manageable at about 69%, bolstered by investment-grade credit ratings. Strong operating margins and end-market stability in aerospace and industrials further support ongoing payments. Analysts view the payout as highly secure, with capacity for future increases aligned with earnings growth.

Dividend Compared to Industry Peers

In the specialty industrial machinery sector, Parker-Hannifin (PH)'s ~0.9% yield trails higher-yielding peers like Illinois Tool Works (ITW) at ~2.5%, Emerson Electric (EMR) at ~1.6%, and Dover (DOV) at ~0.9%. Eaton (ETN) yields ~1.0%, while AMETEK (AME) is lower at ~0.6%. However, PH excels in growth (15% 5-year CAGR) versus peers' more modest rates, matching Dover's elite streak. Its profile suits growth-oriented investors over pure income seekers, given the sector average yield near 1.5%.

AI Screener

Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. It efficiently identifies dividend stocks, income-focused investments, trending stocks, breakout candidates, and market opportunities more effectively than manual screening. Explore the AI Screener to enhance your research today.

Is This Stock Attractive for Dividend Investors?

Parker-Hannifin (PH) appeals primarily to dividend growth investors seeking compounding over time rather than immediate high income. Its 70-year streak and 15% five-year growth rate position it as a Dividend King, ideal for long-term holders prioritizing total returns from rising payouts amid stock appreciation. Conservative investors may appreciate the low 26% payout ratio, strong FCF coverage, and investment-grade balance sheet, which buffer against downturns. However, the modest 0.9% yield may deter yield-focused income seekers favoring peers like ITW or EMR. Growth-oriented portfolios benefit from PH's acquisition-driven expansion and industrial exposure. Balanced investors could pair it with higher-yield industrials for diversification, weighing its premium valuation against sustained hike potential.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations