In: Finance
Find an example of a company that recently increased its dividend, give a brief discussion of the situation, and how the stock has fared since.
Parker Hannifin Corporation is a diversified manufacturer of motion and control technologies and systems, providing precision-engineered solutions for a wide variety of mobile, industrial and aerospace markets. Parker Hannifin Corporation has increased its annual dividends paid to shareholders for 59 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index.
The reason for the strong growth dividend for many years according to the Chairman & CEO is improved market conditions together with the ongoing benefits of implementing the new strategy delivered widespread improvements across the company. Sales were a second quarter record and increased 10% organically, while order rates increased 13% year-over-year. Solid margin performance continued. The company is firmly positioned to build on the financial progress that has been made in recent years and to deliver record sales and earnings in fiscal 2018.