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    How Investors May Respond To Veralto (VLTO) Boosting Its Quarterly Dividend By 18%

    Simply Wall St·12/19/2025 08:19:38
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    • Veralto recently announced that its board approved an 18% increase to its quarterly cash dividend, lifting it to US$0.13 per share, payable on January 30, 2026 to shareholders of record on December 31, 2025.
    • This dividend hike highlights management’s confidence in Veralto’s cash-generation profile and its willingness to return more capital directly to shareholders.
    • Next, we’ll explore how this higher quarterly dividend shapes Veralto’s investment narrative, especially its emphasis on recurring cash flows.

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    Veralto Investment Narrative Recap

    To own Veralto, you need to believe in its ability to turn demand for water quality and product identification solutions into steady, recurring cash flows. The 18% dividend increase to US$0.13 per share underlines that cash generation, but does not materially change near term catalysts or the key risks around China weakness, input cost inflation, and margin pressure in the Product Quality & Innovation segment.

    The recent authorization of a share repurchase program of up to US$750,000,000 sits alongside the higher dividend as another way Veralto is using its balance sheet strength. Together, these capital returns are occurring while the company leans into secular growth drivers in water reuse and digital workflows, which remain central to its long term story despite ongoing pressure in China and cost headwinds.

    However, against this backdrop of rising dividends and buybacks, investors should be aware that persistent margin pressure in PQI from integration costs, supply chain shifts, and inflation could...

    Read the full narrative on Veralto (it's free!)

    Veralto's narrative projects $6.4 billion revenue and $1.1 billion earnings by 2028. This requires 6.0% yearly revenue growth and about a $200 million earnings increase from $893.0 million today.

    Uncover how Veralto's forecasts yield a $114.06 fair value, a 13% upside to its current price.

    Exploring Other Perspectives

    VLTO 1-Year Stock Price Chart
    VLTO 1-Year Stock Price Chart

    Three members of the Simply Wall St Community currently see Veralto’s fair value between US$114.06 and US$139.90, highlighting a wide dispersion of views. You may want to weigh those opinions against the risk that ongoing cost inflation and integration spending could squeeze margins and influence how reliably Veralto can support both growth investments and growing shareholder returns.

    Explore 3 other fair value estimates on Veralto - why the stock might be worth just $114.06!

    Build Your Own Veralto Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your Veralto research is our analysis highlighting 3 key rewards that could impact your investment decision.
    • Our free Veralto research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Veralto's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.