Acme United’s (ACU – $9.40) Board of Directors agreed to increase the Company’s quarterly dividend with 1 cent to 7 cents per share. At today’s share price, that’s an annual yield of almost 3%, which is much higher than the interest rate you earn on a regular savings account or a 10-year bond.
Acme has been paying quarterly dividends for many years and has increased the amount by 1 cent every 6 to 8 quarters. This is an excellent way to show confidence in the business and the market. Additionally, it builds long term shareholder value.
The next dividend is payable on October 24, 2011 to stockholders of record on the close of business on October 3, 2011.
Acme United’s top line is improving substantially thanks to growth in virtually all its segments. Items like the iPoint pencil sharpener continue to sell very well, recently introduced products are gaining momentum and Pac-Kit Safety Equipment Company, which was acquired late February 2011, is recording record revenues.
Increasing revenues, along with cost savings in Europe, ensured that earnings grew with more than 11% in the second quarter of 2011.
All of this makes Acme United a solid and safe investment with strong growth potential and with a high yield as an added bonus.
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