Sun Hydraulics Rewards Shareholders with Special Dividend - Analyst Blog

Sun Hydraulics Corporation (SNHY) recently announced that it received its board of directors' approval for the payment of a special dividend of $1.00 per share. This disbursement comes in addition to the quarterly dividend payment of 9 cents per share announced on Sep 22. Such rewards will surely boost investors' confidence in the stock.

The special dividend will be paid on Oct 24 to shareholders of record as on Oct 10, while the quarterly cash dividend will be distributed on Oct 15 to shareholders of record as on Oct 2. On an annualized basis, Sun Hydraulics' dividend comes in at 36 cents.

Sun Hydraulics follows a consistent policy of rewarding its shareholders handsomely through dividend payments, having paid approximately $7.1 million in the first half of 2014. The company's shareholder-friendly capital allocation strategy indicates a healthy cash position. In first-half 2014, the company generated cash of $26.7 million from its operating activities, while its cash and cash equivalents were $72.1 million at the end of the first six months.

With a sound dividend policy and strong cash position, Sun Hydraulics will continue rewarding its shareholders in the quarters ahead. The company's annual dividend yield is anticipated at 0.98% for 2014. Also, the company appears well-positioned to gain from the growing demand for industrial equipments.

The Zacks Consensus Estimate for Sun Hydraulics is pegged at $1.62 for 2014 and $1.91 for 2015, representing year-over-year growth of 11.7% and 17.9% respectively.

With a market capitalization of $950 million, Sun Hydraulics currently carries a Zacks Rank #4 (Sell). Some better-ranked companies in the industrial equipment and component industry include Metso Corporation (MXCYY), IDEX Corporation (IEX) and The Middleby Corporation (MIDD). While Metso Corporation sports a Zacks Rank #1 (Strong Buy), both IDEX Corporation and Middleby hold a Zacks Rank #2 (Buy).

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