Brady Raises Quarterly Dividend 2.0% to $0.25

Brady Corporation raised its quarterly Class A dividend 2.0% to $0.25 from $0.245. The shares traded ex-dividend on October 9, 2026, and the payment is due October 30, 2026, establishing an annual dividend rate of $1.00.

Why the dividend changed

Brady’s declaration offered no detailed operating rationale beyond the board’s approval. The company identified the payment as its 41st consecutive annual dividend increase, a longer record than reflected in some standardized dividend histories. The increase is a routine step-up rather than an adjustment tied to a stock split, merger or spinoff. Brady’s dividend announcement confirms the board action and consecutive-year record.

The operating backdrop helps explain why Brady retained room for another increase. Fiscal 2026 revenue rose 9.8%, including 5.3% organic growth, while adjusted diluted earnings per share increased 15.0%. Operating cash flow increased nearly 35%. Chief Financial Officer Ann Thornton said the balance sheet supported investment in organic growth, lower net leverage and continued returns through dividends and repurchases. Brady’s fiscal 2026 results provide the results and management commentary.

Capital allocation is also being reshaped by Brady’s acquisition of Honeywell’s Productivity Solutions and Services business. The transaction closed after the fiscal year for a cash purchase price of $1.4 billion and added mobile computing, scanning, printing and software operations. Brady expects the renamed Intelligent Productivity Solutions segment to contribute about $1.15 billion of fiscal 2027 revenue and approximately $0.80 of adjusted diluted earnings per share, net of financing costs. Company guidance calls for fiscal 2027 adjusted diluted earnings per share of $6.25 to $6.75. These expectations are management guidance, not realized results.

Dividend track record

The payment history shows small, regular increases. Brady paid $0.24 in each of the first three quarters of 2025, moved to $0.245 in October 2025 and held that rate through July 2026. The October 2026 payment then advanced to $0.25. That pattern indicates annual resets followed by several unchanged quarterly payments, rather than increases every quarter.

Full-year totals rose from $0.87 in 2020 to $0.89 in 2021, $0.91 in 2022, $0.93 in 2023, $0.95 in 2024 and $0.97 in 2025. The annual increases ranged from 1.3% to 2.3% over that span, while five-year dividend growth was 1.9% annual growth. The available annual record shows no past cut. Brady’s own release puts the current increase within a 41-year run of consecutive annual raises.

The latest 2.0% increase therefore fits Brady’s recent pattern: modest dividend growth supported by consistency rather than rapid payout expansion. At the new rate, an investor holding 100 shares receives $100.00 in annual dividend income before taxes.

Is the dividend covered?

The dividend consumes 23% of earnings. That ratio means most reported earnings remain available for reinvestment, acquisitions, debt reduction, repurchases and other corporate purposes after the dividend obligation.

SmarterDividends rates the dividend A with a safety score of 99. The grade means very safe (score 80-100). It reflects substantial earnings coverage and a long record of maintaining annual increases, though it does not eliminate operating or integration risk.

The major acquisition makes future balance-sheet and cash-flow trends especially relevant. Brady financed the transaction with cash, credit-agreement borrowings and senior notes, increasing the importance of management’s stated plan to reduce net leverage while continuing shareholder returns. Brady’s annual filing details the financing and integration plan.

Yield and valuation

At a share price of $81.93, Brady’s forward yield is 1.22%. That is below the Industrials sector median forward yield of 1.66%, so the stock provides less current dividend income than the sector midpoint. The lower yield accompanies a history of gradual annual increases and a 23% earnings payout ratio.

SmarterDividends estimates fair value at $95.72 and classifies the shares as undervalued, representing 17% upside to fair value. The estimate is a valuation reference based on current inputs, not a forecast of where the shares will trade.

What to watch

The immediate milestone is the October 30, 2026 payment. After that, the key disclosure will be Brady’s fiscal first-quarter report. The quarter ends October 31, 2026, and will be the first filing to include results from the acquired Productivity Solutions and Services operations beginning with the August 3 closing. Investors will be able to compare those results with management’s revenue, earnings and integration guidance.

Cash generation, acquisition-related costs and net leverage will provide the clearest operating context for dividend coverage. The company also recently sold its French Securimed first-aid business for approximately EUR 53 million, or approximately USD 59 million, continuing the portfolio changes around the larger acquisition. Brady’s Securimed announcement describes the divestiture.