■ Increase · August 20, 2026
Badger Meter (BMI) Raises Dividend by 10% to $0.44 Quarterly
Badger Meter increases quarterly dividend 10% to $0.44, lifting annual rate to $1.76, alongside a $150M buyback authorization.
Dividend Increase and Shareholder Returns
Badger Meter, Inc. (BMI) has announced a 10% increase in its quarterly common stock dividend, raising the payout to $0.44 per share from $0.40. The dividend is payable on September 11, 2026, to shareholders of record on August 28, 2026. This adjustment brings the annual dividend rate to $1.76 per share. The company's board of directors approved the hike, reflecting management's confidence in cash generation and a continued emphasis on returning capital to shareholders alongside growth investments.
In addition to the dividend increase, Badger Meter has expanded its share repurchase authorization to $150 million. This combination of higher dividends and an enlarged buyback program occurs during a period of recent sales and earnings declines, underscoring the company's commitment to shareholder returns even as it navigates short-term headwinds.
Growth Narrative and Financial Projections
Badger Meter's growth strategy centers on digital water infrastructure, recurring software revenues, and replacement-driven utility demand. The company's financial projections indicate a target of $1.1 billion in revenue and $176.1 million in earnings by 2029. Achieving these figures would require an 8.0% annual revenue growth rate and an earnings increase of approximately $50 million from the current level of $125.7 million.
The dividend hike signals confidence in future cash flows, but near-term catalysts remain tied to execution on advanced metering infrastructure (AMI) and software adoption. Key risks include the lumpy nature of municipal spending and input cost volatility that could pressure margins. Analysts' views on the company's upside vary, with some more pessimistic forecasts citing higher cybersecurity and compliance costs as margin headwinds, even while still projecting earnings to rise to about $177.1 million by 2029.
Fair Value Estimates
Based on Badger Meter's forecasts, a fair value estimate of $155.11 per share has been calculated, implying an 18% upside from the current price. However, other fair value estimates suggest the stock might be worth 11% less than its current trading price, highlighting the divergence in analyst opinions. These differing valuations underscore the importance of examining the underlying data and assumptions.
For a detailed look at Badger Meter's dividend history and payout record, see the dividend history page. To calculate potential returns based on current dividend data, use the dividend calculator.
What it means for income investors
The dividend increase and share repurchase authorization demonstrate Badger Meter's commitment to returning capital to shareholders. However, the company's recent earnings declines and reliance on cyclical municipal projects suggest that dividend sustainability will depend on future earnings growth. Income-focused investors may note the higher yield but should consider the broader financial context.
Reporting based on: simplywall.st. Figures verified against market data where available.