Atkore Inc. Initiates Quarterly Dividend

Rhea-AI Summary

Atkore Inc. (ATKR) announced its first quarterly cash dividend of $0.32 per share of common stock, payable on March 15, 2024, to stockholders of record on February 27, 2024. This follows the announcement of the new dividend program during the presentation of its updated capital deployment model and Fourth Quarter Fiscal Year 2023 earnings release on November 17, 2023.

Financial Analyst

The initiation of a quarterly dividend by Atkore Inc. marks a significant shift in the company's capital allocation strategy. Dividends are a tangible return on investment, often perceived as a sign of financial strength and consistent earnings. A dividend initiation can attract a new cohort of income-focused investors, potentially increasing the stock's demand and price. However, it's crucial to assess the sustainability of this dividend, which hinges on the company's free cash flow and future earnings projections.

Investors should evaluate Atkore's payout ratio, which compares the dividend per share with the earnings per share. A low payout ratio may suggest room for future dividend growth, whereas a high ratio could raise concerns about the dividend's sustainability. Additionally, the company's debt levels and capital expenditures must be considered, as these factors can influence the ability to maintain and grow dividends.

Market Research Analyst

Atkore Inc.'s decision to start paying dividends coincides with its presentation of an updated capital deployment model, implying a strategic pivot towards rewarding shareholders directly. This move can be indicative of the company's maturity in its lifecycle, transitioning from a reinvestment phase to a shareholder return phase. It's essential to analyze industry trends, as a dividend initiation could be a response to competitive pressures or a means to align with sector practices.

Understanding the market's reception to such announcements is also critical. The announcement's timing, shortly after an earnings release, suggests confidence in operational performance and future prospects. Market analysts should track the stock's performance following the dividend announcement to gauge investor sentiment and the perceived value of the company's new dividend policy.

Economist

The broader economic context cannot be overlooked when evaluating Atkore's new dividend program. In a low-interest-rate environment, dividends can be particularly attractive as they offer a higher yield than many fixed-income alternatives. Conversely, in a rising interest-rate environment, high-yield dividends might be less attractive as investors have access to safer returns elsewhere. Thus, the effectiveness of a dividend as a tool for capital attraction is partially contingent on the macroeconomic climate.

An economist would also consider the impact of economic cycles on Atkore's core business sectors. For instance, a downturn in the commercial construction or telecommunications sectors could affect the company's profitability and, consequently, its ability to sustain dividend payments. Long-term economic forecasts should be juxtaposed with the company's financial resilience to assess the prudence of initiating a dividend program under current economic conditions.

HARVEY, Ill.--(BUSINESS WIRE)-- The Board of Directors of Atkore Inc. (the “Company”) (NYSE: ATKR), a leading manufacturer of electrical products for commercial, industrial, data center, telecommunications, and solar applications, today declared a quarterly cash dividend of $0.32 per share of common stock payable on March 15, 2024, to stockholders of record on February 27, 2024. This is the first quarterly dividend to be paid by the Company as part of its new dividend program, which was announced during the presentation of its updated capital deployment model and Fourth Quarter Fiscal Year 2023 earnings release on November 17, 2023.

About Atkore Inc.

Atkore is a leading manufacturer of electrical products for commercial, industrial, data center, telecommunications, and solar applications. With 5,600 employees and $3.5B in sales in fiscal year 2023, we deliver sustainable solutions to meet the growing demands of electrification and digital transformation. To learn more, please visit www.atkore.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240130643302/en/

Media Contact:

Lisa Winter

Vice President - Communications

708-225-2453

AtkoreCommunications@atkore.com

Investor Contact:

John Deitzer

Vice President - Treasury & Investor Relations

708-225-2124

Investors@atkore.com

Source: Atkore Inc.

What is the ticker symbol for Atkore Inc.?

The ticker symbol for Atkore Inc. is ATKR.

When will the quarterly cash dividend be payable to stockholders?

The quarterly cash dividend will be payable on March 15, 2024.

What is the amount of the quarterly cash dividend per share of common stock?

The amount of the quarterly cash dividend per share of common stock is $0.32.

When is the record date for stockholders to receive the quarterly cash dividend?

The record date for stockholders to receive the quarterly cash dividend is February 27, 2024.

When was the new dividend program announced?

The new dividend program was announced during the presentation of Atkore Inc.'s updated capital deployment model and Fourth Quarter Fiscal Year 2023 earnings release on November 17, 2023.