HOUSTON - Energy technology company Baker Hughes (NASDAQ: BKR) has announced an increase in its quarterly cash dividend. The company's board of directors declared a dividend of $0.21 per share of Class A common stock, which is scheduled to be paid on May 16, 2024, to shareholders on record as of May 6, 2024. This represents an 11% increase from the dividend paid in the same quarter the previous year.
The dividend hike is part of Baker Hughes' strategy to incrementally grow its dividend responsibly over time. The company plans to fund the increased dividend from its operational cash flow. Baker Hughes, with a history spanning over a century, operates in more than 120 countries and aims to advance the energy sector by making it safer, cleaner, and more efficient.
The dividend increase comes as a piece of positive news for investors, reflecting confidence in the company's financial health and commitment to shareholder returns. Baker Hughes has positioned itself as a key player in the energy technology space, offering a range of solutions to its energy and industrial customers globally.
The announcement made today is based on a press release statement from Baker Hughes. The company has not provided further details on its financial performance or future projections in conjunction with this dividend declaration. Shareholders of Baker Hughes can expect to receive the increased dividend in mid-May, following the identified record date in early May.
Baker Hughes has not disclosed any additional financial metrics or guidance alongside this announcement. The energy technology provider continues to focus on delivering solutions aimed at enhancing the efficiency and sustainability of energy production and usage around the world.
InvestingPro Insights
Baker Hughes (NASDAQ: BKR) has shown a strong commitment to delivering shareholder value through consistent dividend payments, a trend that is set to continue with the recent dividend increase announcement.
Reflecting on the company’s financial health, the InvestingPro data highlights a robust revenue growth of 20.56% over the last twelve months as of Q4 2023, with a gross profit margin of 20.72%. This financial stability is further underscored by the company's Price/Earnings (P/E) ratio of 15.26, indicating a reasonable valuation compared to industry peers.
Two InvestingPro Tips that are particularly relevant to investors in light of the dividend news include the company's longstanding history of dividend payments, with Baker Hughes having maintained these payouts for 38 consecutive years, and the prediction by analysts that the company will remain profitable this year. This is a testament to the company’s resilience and strategic financial management, providing a degree of assurance to shareholders looking for reliable returns.
For investors seeking more in-depth analysis and additional tips, there are 12 more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/BKR. To enhance your investing experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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