Badger Meter (BMI): An Under-the-Radar Dividend Stock Worth Watching

Badger Meter, Inc. (NYSE:BMI) was recently included on our list of Dividend Champion vs Aristocrats: 12 Under the Radar Stocks to Buy.

An engineer overseeing the calibrations of a sophisticated flow meter.

Badger Meter, Inc. (NYSE:BMI) is recognized as a top-tier company in the market, known for its strong operational performance and potential for expanding profit margins in a fundamentally appealing industry. The company is well-positioned to benefit from long-term shifts toward greater resource efficiency, thanks to its emphasis on Advanced Metering Infrastructure (AMI) and Software as a Service (SaaS). These areas are becoming more important as regulations tighten and sustainability becomes a global priority.

In its recently announced earnings, Badger Meter, Inc. (NYSE:BMI) reported revenue of $238 million, which showed a nearly 10% growth from the same period last year. Operating earnings rose by 8% from the same period last year, reaching $44.9 million. However, operating profit margins slightly declined to 18.8% from 19.2% a year earlier. Diluted earnings per share (EPS) also saw a 4% increase, coming in at $1.17 compared to $1.12 in the previous year’s quarter.

Badger Meter, Inc. (NYSE:BMI) generated $44.5 million in operating cash flow, up 22% from the prior-year period. The company ended the quarter with $165.2 million available in cash and cash equivalents. It offers a quarterly dividend of $0.34 per share and has a dividend yield of 0.71%, as recorded on July 23. BMI is among the best stocks on our dividend champions list, as the company has grown its payouts for 32 years straight.

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Disclosure: None.