Napco Security Technologies Raises Quarterly Dividend 13.33%

Napco Security Technologies, Inc. (NASDAQ: NSSC) increased its quarterly dividend to $0.17 per share from $0.15, a 13.33% raise. The industrial security-technology company’s shares traded ex-dividend on Sept. 11, 2026.

The increase extends Napco’s dividend-growth streak to two consecutive years. Based on a share price of $36.26, the stock has a forward annual yield of 1.72%. The company has a dividend-safety score of 70 out of 100, corresponding to a B grade.

Business growth supports the increase

Napco designs electronic security equipment and provides wireless communication services for intrusion and fire-alarm systems. Its portfolio also includes access-control systems, door-locking products, video-surveillance equipment and school-safety products. The company sells principally through independent security distributors, dealers and installers, according to its fiscal 2026 annual report.

The dividend increase followed a record fiscal year. Napco reported that fiscal 2026 revenue rose 11.4% to $202.3 million, while recurring service revenue increased 13.0% to $97.5 million. That service business generated a gross margin above 90%, giving Napco a growing stream of high-margin revenue alongside its equipment sales. Equipment revenue increased 10.0% to $104.8 million for the year, according to the company’s fourth-quarter and full-year earnings release.

Chief Executive Kevin Buchel linked the stronger operating performance to the board’s decision to continue and increase the dividend. He cited growth in recurring services, stronger equipment sales and expanded margins. Napco also reported $61.1 million of operating cash flow for fiscal 2026, up from $53.5 million a year earlier.

What it means for income investors

The raise increases the cash distributed per share each quarter and adds another year to Napco’s short dividend-growth record. The 1.72% forward yield remains modest relative to securities primarily held for income, making dividend growth and payment sustainability particularly relevant considerations. The B safety grade indicates a relatively solid assessment, but dividends remain subject to future board approval and can change with operating results, cash needs or business conditions.