Lennox Raises Quarterly Dividend 4.6% to $1.36

Lennox International raised its quarterly dividend 4.6%, to $1.36 a share from $1.30. The higher rate first applied to shares with the June 30, 2026 ex-dividend date, and the next ex-dividend date is September 30, 2026.

Why the dividend changed

Lennox’s board approved the increase without tying it to a specific earnings, cash-flow or leverage target. The declaration was concise, identifying the new rate and the applicable record and payment schedule but offering no detailed financial rationale. Lennox dividend release

The operating backdrop provides more context. In the first quarter, reported shortly before the increase, revenue grew 6%, but operating income fell 3% and diluted earnings per share declined 8%. Home Comfort Solutions faced lower volumes and market softness, while Building Climate Solutions and contributions from the Duro Dyne and Supco acquisitions supported companywide revenue growth. Chief Executive Alok Maskara said the company remained focused on differentiated growth, bolt-on acquisitions and disciplined capital allocation. Lennox first-quarter results

Results reported after the dividend decision reinforced that mixed picture. Second-quarter revenue rose 3% and operating income increased 2%, while diluted earnings per share was flat. Home Comfort Solutions revenue fell 7% as residential construction remained a headwind, but Building Climate Solutions revenue grew 24%. Lennox also added the Comfort-Aire and Century brands to a portfolio already expanded through Duro Dyne and Supco. Lennox second-quarter results

Management reaffirmed full-year revenue growth guidance of approximately 8%, including a 5% contribution from completed acquisitions. It updated its earnings-per-share range to $23.00 to $24.00 and maintained free-cash-flow guidance of $750 million to $850 million. The dividend increase therefore sits within a broader allocation program that balances shareholder distributions, acquisitions and operating investment rather than signaling a change in strategy.

Dividend track record

The new payment extends Lennox’s dividend-growth streak to 16 consecutive years. The recent quarterly record shows a stepwise pattern: the company paid $1.15 for the April 30, 2025 ex-dividend period, lifted the rate to $1.30 for June 30, 2025, maintained that amount through March 31, 2026, and then moved to $1.36 for June 30, 2026.

Full-year payments have also risen consistently across the period shown. The annual total advanced from $3.08 in 2020 to $3.53 in 2021, an increase of 14.6%. It reached $4.10 in 2022 after rising 16.2%, then climbed 6.3% to $4.36 in 2023 and 4.4% to $4.55 in 2024. The 2025 total was $5.05, up 11.0%.

The five-year record amounts to 11.0% annual growth. The latest 4.6% increase is more restrained than that longer-run pace, consistent with a business managing residential weakness while investing in acquisitions and commercial growth.

Is the dividend covered?

The dividend consumes 23% of earnings. That payout ratio indicates that less than one-quarter of reported profit is being distributed, leaving a substantial earnings cushion for operating volatility, capital spending and other uses of cash.

SmarterDividends rates the dividend A, with a safety score of 88. That falls in the very safe range of 80-100. The grade reflects strong earnings coverage and the established growth record, although it does not remove exposure to housing demand, input costs or acquisition execution.

Yield and valuation

At a share price of $371.33, Lennox’s forward yield is 1.46%. That is below the Industrials sector median forward yield of 1.61%, positioning the shares as a lower-yielding industrial dividend payer. The annual dividend is $5.44 a share, equivalent to $544.00 of annual income for every 100 shares.

SmarterDividends estimates fair value at $360.30 and assigns the stock a fair valuation verdict, with 0% upside to fair value. The shares have recorded a 28.9% loss over one year, but the current yield remains below the sector median.

What to watch

The next immediate date is September 30, 2026, when Lennox shares are scheduled to trade ex-dividend. The company’s dividend history confirms that the quarterly rate remains $1.36. Lennox dividend history

The next earnings report will give investors an updated view of residential demand, pricing and tariff effects, and the integration of Comfort-Aire, Century, Duro Dyne and Supco. Home Comfort Solutions remained under pressure in the second quarter, while Building Climate Solutions supplied the strongest growth. Those segment trends, along with any revision to the current earnings and free-cash-flow guidance, will show whether operating coverage continues to support Lennox’s dividend policy.