Badger Meter Raises Dividend 10.0% to $0.44

Badger Meter Inc. raised its quarterly dividend 10.0% to $0.44 per share from $0.40. Shares traded ex-dividend on August 28, 2026, and the new rate equates to an annual dividend of $1.76 per share.

Why the dividend changed

The board tied the increase to the durability of Badger Meter’s business model, balance-sheet strength and capacity to generate cash. Chief Executive Kenneth Bockhorst said the company intends to keep investing in innovation, expand its BlueEdge water-management portfolio, pursue strategic growth and return capital to shareholders while preserving financial flexibility. The board approved the increase on August 14, 2026. Badger Meter’s dividend announcement

The increase came amid mixed near-term operating conditions. In the second quarter, sales improved sequentially as order rates strengthened and some awarded utility-water projects began initial deployments. Results remained below the prior-year period, however, as the uneven rollout of advanced metering infrastructure projects weighed on utility-water sales. Management said the project pipeline remained broadly on schedule to ramp during the second half and maintained its expectation for full-year revenue, excluding acquisitions, to be roughly flat with 2025. Badger Meter’s second-quarter results

Capital deployment has extended beyond the dividend. Badger Meter completed its acquisition of UDlive effective May 1, adding a UK sewer-monitoring business to BlueEdge alongside SmartCover. Management reported progress integrating the operation and strong initial commercial interest. The company funded the transaction with cash on hand, illustrating the balance between acquisitions and shareholder distributions described in its capital-allocation policy. Badger Meter’s UDlive announcement

Badger Meter also expanded its share-repurchase authorization in February. That action placed buybacks alongside dividends, internal investment and acquisitions as potential uses of capital, although the company said the timing and amount of repurchases would depend on its priorities and market conditions. Badger Meter’s capital-return announcement

Dividend track record

The annual payment record shows a steady progression. Total dividends rose from $0.70 per share in 2020 to $0.76 in 2021, $0.85 in 2022, $0.99 in 2023, $1.22 in 2024 and $1.48 in 2025. Annual growth accelerated from 8.6% in 2021 to 11.8% in 2022 and 16.5% in 2023, followed by 23.2% in 2024 and 21.3% in 2025. The five-year rate is 16.2% annual growth.

The individual payments show Badger Meter’s typical stair-step pattern. The quarterly distribution was $0.34 on the November 22, 2024, February 28, 2025, and May 23, 2025, ex-dividend dates. It moved to $0.40 beginning August 22, 2025, remained there through May 22, 2026, and increased to $0.44 for August 28, 2026. The company describes the latest action as its 34th consecutive year of dividend growth. Badger Meter’s dividend announcement

Is the dividend covered?

The dividend consumes 37% of earnings. That payout ratio leaves earnings capacity outside the distribution for operations, acquisitions and other capital needs, while providing a direct measure of coverage from reported profit.

SmarterDividends rates the dividend A, with a safety score of 88. That falls within the very safe range of 80-100 and indicates strong coverage under the methodology. The grade does not eliminate operating risk, particularly when utility project timing affects quarterly results, but it shows that the current payment is not absorbing most of earnings.

Yield and valuation

At a share price of $131.74, the annual dividend of $1.76 produces a forward yield of 1.32%. That is below the Technology sector median forward yield of 1.38%, so the shares provide slightly less current income than the sector benchmark despite the higher payment.

SmarterDividends estimates fair value at $125.03 and assigns a fair valuation verdict. The share price represents 6% downside to that estimate. The stock’s one-year price return is a 26.4% loss, while its market value is $3.8 billion.

What to watch

The next operating checkpoint is Badger Meter’s quarterly earnings report. The principal items are the pace of awarded utility-water project deployments, the revenue run-rate exiting 2026 and the effect of cost controls on margins. Management’s latest outlook called for full-year revenue excluding acquisitions to remain roughly flat with 2025 and for project activity to strengthen during the second half. Badger Meter’s second-quarter results

Investors can also track UDlive’s integration and commercial rollout, along with the balance among acquisition spending, share repurchases and quarterly dividends. The August 28, 2026, ex-dividend date has passed, making the next board declaration the next scheduled dividend event to monitor.