ABM Industries raises dividend for 56th consecutive year in 2022
On December 5, 2022, integrated facility services provider ABM Industries (trading symbol ABM) declared a 12.8% dividend hike to $0.22 quarterly per share. This is the biggest dividend increase announced by ABM in more than a decade and marks 56 consecutive years of dividend growth.
A less known dividend growth stock is ABM Industries, one of the world’s largest providers of integrated facility services. ABM just announced its 56th consecutive year of increased dividends with a new quarterly payment of 22 cents per share announced earlier this week.
The increased ABM dividend will be payable on February 6, 2023, to shareholders of record on January 5, 2023. A new annual dividend rate of 88 cents per share will yield 1.9% at a stock price of $45.76.
Sudhakar Kesavan, Chairman of the Board of Directors of ABM, commented, “This dividend increase reflects ABM’s growth and the Board’s confidence in the company’s ability to continue to deliver solid results and cash flows. The increase also represents a jumpstart of ABM’s plan to grow its dividend payout ratio to a range of 30% to 35% of adjusted net income over the long term.”
“I am pleased the Board of Directors has approved our dividend increase,” said Scott Salmirs, ABM’s President & Chief Executive Officer. “The dividend is an important component of our balanced approach to capital allocation, along with strategic M&A activity and share repurchases, to drive total shareholder return. Our strong cash flows provide the fuel and flexibility to fund all three, while still continuously investing in organic growth.”
ABM Industries offers a facility services that includes janitorial, engineering, parking, electrical & lighting, energy solutions, HVAC & mechanical, landscape & turf, and mission critical solutions. ABM delivers these custom facility solutions to properties across a wide range of industries – from commercial office buildings to schools, airports, hospitals, data centers, manufacturing plants and distribution centers and entertainment venues. The company was founded in 1909 and has been paying a dividend to shareholders every year since at least 1965.