Vertiv Holdings Co. (NYSE: VRT) announced a quarterly dividend of $0.0625 per share, set to go ex-dividend on March 17, 2024. Shareholders on record as of that date will receive the dividend payment on March 26, 2024. This marks a continuation of the company’s commitment to returning value to its investors, with an annualized dividend yield of 0.1%.
Over the past three years, Vertiv has increased its dividend by an average of 0.7% annually, successfully raising it for the last two consecutive years. The company’s payout ratio stands at 5.7%, indicating that its earnings sufficiently cover the dividend payments. Analysts predict that Vertiv will achieve earnings of $4.46 per share next year, suggesting the company will maintain the ability to cover its annual dividend of $0.25 with a future payout ratio of 5.6%.
Stock Performance and Insider Activity
During midday trading on Friday, Vertiv’s stock price declined by $6.58, reaching $258.80. The trading volume was notable at 6,973,028 shares, exceeding the average volume of 6,745,407 shares. Vertiv’s stock has experienced fluctuations over the past year, with a twelve-month low of $53.60 and a high of $276.78. The company has a market capitalization of $99.02 billion, with a price-to-earnings ratio of 75.89.
Recent insider transactions revealed significant stock sales. Director Roger Fradin sold 101,666 shares on February 27, 2024, at an average price of $252.13, totaling approximately $25.6 million. Similarly, Chairman David M. Cote sold 40,000 shares on February 26, 2024, at an average price of $255.29, amounting to around $10.2 million. Following this sale, Cote retained 22,258 shares, valued at approximately $5.68 million. In total, insiders have sold 489,761 shares worth about $123.36 million in the last 90 days, with corporate insiders holding 2.63% of the stock.
Institutional Investor Activity
Various hedge funds and institutional investors have recently adjusted their stakes in Vertiv. Vanguard Group Inc. increased its stake by 2.2% during the third quarter, now owning 38,833,036 shares valued at approximately $5.86 billion. State Street Corp. lifted its stake by 2.8% in the fourth quarter, holding 8,694,900 shares valued at around $1.41 billion.
Additionally, Geode Capital Management LLC increased its stake by 2.1% during the fourth quarter, owning 7,065,912 shares worth approximately $1.14 billion. Invesco Ltd. also grew its holdings by 2.1%, with 5,974,205 shares valued at about $967.88 million. Lastly, Norges Bank acquired a new stake worth $808.7 million in the same quarter. Collectively, institutional investors and hedge funds own 89.92% of Vertiv’s stock.
About Vertiv
Vertiv, headquartered in Columbus, Ohio, is a global leader in critical digital infrastructure and continuity solutions for data centers, communication networks, and industrial environments. The firm designs, manufactures, and services equipment that ensures power availability, thermal management, and IT infrastructure management across various sectors. Its product portfolio includes uninterruptible power supplies (UPS), power distribution units (PDUs), and integrated modular infrastructure, serving diverse customers, including hyperscale data centers and industrial clients.
As Vertiv continues to navigate the landscape of critical infrastructure solutions, its recent dividend announcement reinforces its strategy to deliver consistent value to shareholders while maintaining robust financial health.
