Pentair Achieves 50th Consecutive Dividend Increase and Plans $1 Billion Share Buyback
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2025
0mins
Source: Fool
- Dividend Growth Milestone: Pentair announced an increase in its quarterly dividend from $0.25 to $0.27 per share, marking the 50th consecutive year of dividend growth, which enhances long-term investor confidence, although the stock price has not shown significant immediate reaction.
- Buyback Plan: Pentair plans to repurchase up to $1 billion worth of shares over the next three years, representing approximately 5.9% of the company's market cap, which not only helps boost earnings per share but may also drive stock price appreciation in the future.
- Earnings Growth Forecast: Analysts project a 10% increase in Pentair's earnings this year, which, combined with the dividend increase and buyback plan, could provide investors with stable total returns and further solidify its competitive position in the industrial machinery sector.
- Market Reaction Analysis: Despite the current lackluster stock performance, Pentair's forward P/E ratio of around 19 is comparable to similar companies, indicating market recognition of its long-standing dividend growth record and potential for future price appreciation.
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Analyst Views on PNR
Wall Street analysts forecast PNR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PNR is 122.40 USD with a low forecast of 90.00 USD and a high forecast of 135.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
14 Buy
2 Hold
2 Sell
Moderate Buy
Current: 105.910
Low
90.00
Averages
122.40
High
135.00
Current: 105.910
Low
90.00
Averages
122.40
High
135.00
About PNR
Pentair plc is engaged in delivering a comprehensive range of smart, sustainable water solutions to homes, businesses and industries around the world. Its segments include Flow, Water Solutions, and Pool. The Flow segment designs, manufactures and sells a variety of fluid treatment and pump products and systems, including pressure vessels, gas recovery solutions, membrane bioreactors, wastewater reuse systems and advanced membrane filtration, separation systems, water disposal pumps, water supply pumps, and fluid transfer pumps. The Water Solutions segment designs, manufactures and sells commercial and residential water treatment products and systems, including pressure tanks, control valves, and activated carbon products. The Pool segment designs, manufactures and sells a complete line of energy-efficient residential and commercial pool equipment and accessories, including pumps, filters, heaters, lights, automatic controls, automatic cleaners, and maintenance equipment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Pentair Achieves 50th Dividend Increase, Joins Dividend Kings
- Dividend Milestone: Pentair announced an 8% dividend increase, marking its 50th consecutive year of raising dividends, joining a select group of just 56 Dividend Kings, showcasing the company's stability amid economic uncertainties.
- Strong Financial Performance: The company recently reported a 14% growth in adjusted earnings per share and record cash flow of $719 million, sufficiently supporting its dividend increase and boosting investor confidence.
- Buyback Program Support: Pentair repurchased $175 million in shares during the first three quarters of 2025, enhancing dividend safety by reducing outstanding shares, thereby making each dividend payment more attractive.
- Superior Payout Ratio: With a payout ratio of only 25%, Pentair can easily increase dividends without jeopardizing financial health, demonstrating its commitment to shareholders and potential for future growth.
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Pentair PLC Analyzes Dividend History and Volatility Assessment
- Dividend Yield Expectation: Pentair PLC's latest dividend is likely to maintain a 1% annualized yield, although the dividend amount is influenced by the company's profitability fluctuations, prompting investors to analyze its historical dividend chart for future trends.
- Volatility Calculation: With a trailing twelve-month volatility of 28% based on the last 251 trading days' closing prices, this metric is crucial for assessing the stock's risk and potential returns, particularly when considering selling the January 2028 $120 call option.
- Options Trading Dynamics: As of Wednesday afternoon, the put volume among S&P 500 components reached 886,181 contracts, while call volume stood at 1.63 million, indicating a preference for call options among investors, reflecting a positive market sentiment.
- Market Sentiment Analysis: The current put:call ratio of 0.54 is below the long-term median of 0.65, suggesting an increased bullish sentiment towards Pentair's stock, which may influence future price movements.
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