FARMINGTON, Conn. - Otis Worldwide Corporation (NYSE: NYSE:OTIS), a global leader in elevator and escalator manufacturing and services, has announced an increase in its quarterly dividend.
The Board of Directors declared a dividend of $0.39 per share on the company's common stock, which is a 14.7% increase from its previous dividend. Shareholders of record as of May 17, 2024, will be eligible for the dividend payout scheduled for June 7, 2024.
Judy Marks, Otis' Chair, CEO, and President, expressed the company's confidence in its future cash flow, attributing this optimism to its service-driven, customer-centric business model. Marks highlighted the company's commitment to shareholder value, noting the substantial growth in dividends since the company's spin-off.
Otis, headquartered in Connecticut, boasts a significant global presence, moving 2.3 billion people daily and maintaining roughly 2.3 million customer units across the world. The company employs 71,000 individuals, including 42,000 field professionals, who cater to a diverse customer base in over 200 countries and territories.
The forward-looking statements regarding expected earnings, cash flow, and dividends are subject to various risks and uncertainties. These include economic conditions in the markets Otis operates, fluctuations in commodity prices, interest rates, foreign currency exchange rates, and the potential impact of geopolitical conflicts. The company notes that past dividend amounts are not indicative of future payouts, which may vary based on these factors.
Investors are advised that the payment and the amount of future dividends could significantly differ from past dividends due to the risks and uncertainties mentioned. For further details on factors that might cause actual results to differ, Otis refers to its periodic filings with the Securities and Exchange Commission (SEC).
This financial update is based on a press release statement issued by Otis Worldwide Corporation.
InvestingPro Insights
Following the announcement of Otis Worldwide Corporation's dividend increase, a closer look through the lens of InvestingPro provides valuable insights for investors. With a perfect Piotroski Score of 9, Otis demonstrates strong financial health and profitability, which may reassure investors about the company's ability to maintain its dividend growth. This is further supported by the fact that Otis has raised its dividend for 4 consecutive years, reflecting a commitment to returning value to shareholders.
InvestingPro Data reveals key metrics that offer a snapshot of Otis's financial stance. The company's Market Cap stands at a robust 39.47B USD, underpinning its significant presence in the Machinery industry. Despite trading at a high P/E ratio of 28.45, which might suggest a premium valuation relative to near-term earnings growth, Otis's revenue growth over the last twelve months was 3.83%, indicating a steady upward trajectory.
Moreover, the company's dividend yield as of February 2024 is 1.41%, coupled with a notable dividend growth of 17.24% over the last twelve months, which is a positive sign for dividend-seeking investors.
For those interested in exploring further, InvestingPro offers additional InvestingPro Tips, including insights on the company's debt levels, stock volatility, and analyst profitability predictions. With 10 more tips available on the platform, investors can gain a comprehensive understanding of Otis's financial health and market position. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and discover how Otis's strong return over the last five years and its position as a prominent player in its industry could impact your investment strategy.
As Otis approaches its next earnings date on April 24, 2024, investors will be watching closely to see if the company's performance aligns with its optimistic dividend outlook and the positive indicators highlighted by InvestingPro.
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