UPDATE: Badger Meter (BMI) Raises Quarterly Dividend 15% to $0.23; Announces 2-for-1 Stock Split

August 12, 2016 4:14 PM EDT

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(Updated - August 12, 2016 4:24 PM EDT)

(Update corrects record date)

Badger Meter (NYSE: BMI) declared a quarterly dividend of $0.23 per share, or $0.92 annualized. This is a 15% increase from the prior dividend of $0.20.

The dividend will be payable on September 15, 2016, to stockholders of record on August 31, 2016, with an ex-dividend date of August 29, 2016.

The annual yield on the dividend is 1.3 percent.

Press release:

Badger Meter, Inc. (NYSE: BMI) today announced that its review of options to enhance shareholder value has been completed. The company’s Board of Directors has determined that the best future course for Badger Meter is to maximize shareholder value by continuing to execute on its long-term growth strategies, return capital to shareholders through a 15% increase in the cash dividend payment and increase the number of shares outstanding through a 2-for-1 stock split.

“Our core strategies have generated substantial growth and created significant value for our shareholders. Over the 10-year period ended June 30, 2016, the company has generated a 12% compound annual total return to shareholders through both a strong dividend policy and stock price appreciation,” said Richard A. Meeusen, chairman, president and chief executive officer of Badger Meter.

“We will continue to look for potential opportunities that meet our criteria to enhance shareholder value, while applying our disciplined approach to capital allocation,” said Meeusen. “This includes continuing to invest in providing industry-leading water metering technologies, meter reading systems and advanced data analytics technologies for our core North American water utility market. We also plan to seek-out strategic acquisitions, both in our North American water distribution channels and in key international flow instrumentation markets. In addition, we plan to continue our expansion into select international water metering markets, including the Middle East, where our E-Series® Ultrasonic water meters and ORION® cellular radio technology are in demand in regions with high water scarcity.”

Stock Split and 15% Dividend Increase

The Board of Directors approved a 15% increase in the quarterly cash dividend payment, from $0.20 to $0.23 per share, based on pre-split shares. The cash dividend is payable September 15, 2016 to shareholders of record at the close of business on August 31, 2016.

“The strategic review also confirmed that with our strong cash flow and solid balance sheet, we have the ability to pursue acquisition opportunities, while also returning capital to shareholders through increased dividend payments,” said Meeusen.

As part of its strategy to increase the marketability of the company’s common stock, the Board of Directors approved a 2-for-1 stock split in the form of a 100% stock dividend. The stock dividend is also payable on September 15, 2016 to shareholders of record at the close of business on August 31, 2016. “The stock dividend will increase our shares outstanding and bring our stock price into a range that we believe is more attractive for individual investors,” said Meeusen.

“This is our twenty-fourth consecutive year of increased dividend payments. The strong dividend increase, renewed commitment to our long-term growth strategy and 2-for-1 stock split reflect our ongoing commitment to our shareholders and our continued confidence in the future of Badger Meter,” said Meeusen.

For a dividend history and other dividend-related data on Badger Meter (BMI) click here.

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