Mueller Water Products (MWA) stock surged 5.29% in the pre-market trading session on Wednesday, driven by positive news surrounding the company's upcoming dividend payment and robust financial performance.
The water management products manufacturer is set to pay a quarterly dividend of $0.067 per share on February 21st. The dividend represents a modest 34% payout ratio and is well-covered by both profits and cash flow, indicating the distribution is sustainable. More importantly, MWA has delivered impressive earnings growth of 13% annually over the past five years while increasing its dividend at a 14% compound annual rate.
With a trailing dividend yield of 1.2% and strong earnings momentum, analysts are optimistic about Mueller Water Products' prospects. The company appears to be reinvesting for growth while maintaining a conservative payout policy, suggesting potential for further dividend hikes in the future as earnings expansion continues.