SWORDS, Ireland - Trane Technologies plc (NYSE:TT), a global climate innovator, has announced a 12% increase in its quarterly dividend, marking a rise to $0.84 per ordinary share, or an annualized payout of $3.36 per share. The increased dividend will be distributed on March 29, 2024, to shareholders who are on record as of March 1, 2024.
Dave Regnery, the chair and CEO of Trane Technologies, attributed the dividend increase to the company's strategic focus on growth, strong financial performance, and sustained high customer demand. He noted that these factors contribute to delivering value to shareholders and support the company's ability to reinvest in its business.
In 2023, the company reported a free cash flow of $2.2 billion, corresponding to 103% of its adjusted net earnings. The latest dividend hike follows a similar 12% increase from the previous year. This consistent enhancement of shareholder returns underscores the company's optimism in its future cash flow generation and commitment to a competitive dividend that aligns with earnings growth over time.
Trane Technologies has a long history of rewarding its shareholders, having paid consecutive quarterly cash dividends on its common shares since 1919 and annual dividends since 1910.
The company, known for its strategic brands Trane® and Thermo King®, specializes in providing environmentally responsible products and services. It offers sustainable climate solutions for buildings, homes, and transportation sectors, aligning with its vision of shaping a sustainable future.
This announcement is based on a press release statement from Trane Technologies.
InvestingPro Insights
Trane Technologies (NYSE:TT), a leader in the climate control industry, continues to demonstrate financial robustness and a commitment to shareholder returns. The company's recent dividend increase is complemented by a strong track record of rewarding its investors, as highlighted by an InvestingPro Tip noting that Trane Technologies has raised its dividend for 3 consecutive years. Moreover, the company has maintained dividend payments for an impressive 53 consecutive years.
Investors seeking additional insights into Trane Technologies' financial health will find the InvestingPro Data to be of interest. The company boasts a market capitalization of $61.49 billion USD and a Price/Earnings (P/E) ratio of 30.82. This is slightly reduced from the last twelve months as of Q4 2023, where the adjusted P/E ratio stood at 29.82. Additionally, the company has reported a solid revenue growth of 10.54% in the last twelve months as of Q4 2023, underscoring its strong financial performance and strategic growth initiatives.
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