Vontier Corporation made a significant announcement on February 16, 2024, revealing that its board of directors had declared a regular quarterly dividend of $0.02 per share ($0.10 annualized). Notably, this amount maintains parity with the previous dividend payout. For investors eyeing this opportunity, it’s essential to learn that shares must be purchased before the ex-dividend date of March 6, 2024, to qualify for the dividend. Moreover, shareholders of record as of March 7, 2024, are set to receive the payment on March 28, 2024.

Historical Context

Reflecting on the past five years and taking a sample every week, the average dividend yield for Vontier Corporation has been 0.36%. This timeframe also reveals that the lowest yield reached 0.27% while the highest surged to 0.58%. Underpinning these figures is the standard deviation of yields, which stands at 0.07 (n=157). Notably, the current dividend yield of 0.24% is situated 1.63 standard deviations below the historical average. This denotes a significant departure from the company’s prior performance.

Additionally, the company’s dividend payout ratio is standing at 0.05. This ratio offers insights into the proportion of a company’s income that is paid out in dividends. In Vontier’s case, a payout ratio of one (1.0) would mean that 100% of the company’s income is being allocated to dividends, potentially indicating an unsustainable scenario. Factoring in the financial landscape, companies with few growth prospects are expected to pay out most of their earnings in dividends, typically resulting in a payout ratio between 0.5 and 1.0.

Fund Ownership and Sentiment

Recent updates indicate that there are 926 funds or institutions reporting positions in Vontier Corporation, signifying an increase of 75 owners or 8.81% in the last quarter. However, the average portfolio weight dedicated to VNT has experienced a decrease of 4.36%, holding at 0.24%. Furthermore, the total shares owned by institutions have seen a marginal upswing, reaching 173,481K shares in the last three months.

Analyst Price Forecast

Analyst price forecasts paint a cautious picture, suggesting a potential 7.35% downside for Vontier Corporation. The average one-year price target, as of January 20, 2024, hovers at 38.08, implying a decrease from the latest reported closing price of $41.10. These projections span a range from a low of 26.26 to a high of $42.00. Meanwhile, the estimated annual revenue for Vontier is projected to reach 3,119MM, reflecting a modest increase of 0.77%. The expected annual non-GAAP EPS is forecasted at 3.17.

Institutional Shareholding

A close look at institutional shareholding patterns reveals noteworthy changes. Putnam Investments has increased its ownership stake in Vontier to 4.62%, representing 7,129K shares. In contrast, T. Rowe Price Investment Management has decreased its ownership to 3.52%, accounting for 5,427K shares. Vanguard Total Stock Market Index Fund Investor Shares, or VTSMX, has marginally increased its ownership to 3.14%, holding 4,843K shares. Additionally, iShares Core S&P Mid-Cap ETF and PUTNAM EQUITY INCOME FUND Shares have also seen fluctuations in their portfolio allocations for VNT.

Background Information About Vontier

Vontier Corporation is a global industrial technology company honing its focus on transportation and mobility solutions. The brand prides itself on a portfolio boasting exceptional expertise in various areas, including mobility technologies, retail and commercial fueling, fleet management, telematics, vehicle diagnostics and repair, and smart cities end-markets. The company’s innovative products, services, and software strive to advance efficiency, safety, security, and environmental compliance on a global scale.