Gorman-Rupp Raises Quarterly Dividend 5.3% to $0.20

The Gorman-Rupp Company raised its quarterly cash dividend to $0.20 a share from $0.19, an increase of 5.3%. The stock trades ex-dividend on November 13, 2026, and the payment is due December 10, 2026, according to the company’s declaration.

Why the dividend changed

Gorman-Rupp did not tie the increase to a transaction or a single operating development. The declaration was issued alongside results showing stronger sales, earnings and cash generation, providing the clearest context for the board’s decision.

The pump maker reported record third-quarter net sales of $193.3 million, up 11.8% from a year earlier, and record net income of $22.7 million, compared with $11.3 million. Adjusted EBITDA reached a record $41.8 million, or 21.6% of sales. Sales increased across all the company’s markets, with volume growth and first-quarter price increases contributing to the advance. Agriculture, construction, industrial and fire-suppression markets were among the largest sources of growth, according to the third-quarter release filed with the SEC.

Cash generation also improved. Operating cash flow for the first nine months was $114.9 million, compared with $91.2 million in the prior-year period, while capital spending was $14.7 million. Gorman-Rupp reduced total debt by $58.0 million over the same period. Chief Executive Scott King said operating improvements and lower interest expense contributed to record earnings and strong cash generation. That combination left the company able to raise the dividend while continuing to invest and reduce leverage.

Management did not issue a formal revenue or earnings forecast in the release. It planned full-year capital spending of approximately $22.0 million to $24.0 million, primarily for machinery and equipment, and said incoming orders and backlog remained healthy entering the fourth quarter. Those priorities show that the dividend increase sits alongside, rather than in place of, investment in operations and debt reduction.

Dividend track record

The latest increase continues a pattern of one measured step-up followed by several flat quarterly payments. Gorman-Rupp paid $0.185 on November 15, 2024, and again on February 14, May 15 and August 15, 2025. It moved to $0.19 on November 14, 2025, held that rate for the first three 2026 payments, and has now set the next payment at $0.20.

Annual totals show the same progression. The dividend rose from $0.59 in 2020 to $0.64 in 2021 and $0.69 in 2022. Growth then moderated: the annual total reached $0.71 in 2023, $0.73 in 2024 and $0.75 in 2025, with the last two full-year increases each measuring 2.8%. The current annual dividend is $0.76, and five-year growth has averaged 5.0% annual growth.

The company says the action marks its 54th consecutive year of increased dividends, a longer record than the recent payment series alone conveys. The declaration places Gorman-Rupp among a small group of US public companies with similarly long records.

Is the dividend covered?

The dividend consumes 27% of earnings. That leaves most reported profit available for debt service, capital spending, working capital and other corporate uses. The stronger operating cash generation reported through the third quarter adds context to that earnings-based coverage, although cash requirements can vary with orders, inventory and investment.

SmarterDividends rates the dividend A with a safety score of 99. The grade falls in the very safe range of 80-100. In plain terms, the combination of a low earnings payout, a long record of increases and improving operating performance indicates substantial coverage under current conditions. The grade describes dividend risk, not the stock’s valuation or prospective return.

Yield and valuation

At a share price of $75.40, Gorman-Rupp’s forward yield is 1.01%. That trails the Industrials sector median forward yield of 1.63%, so the shares provide less current dividend income than the typical sector constituent despite the increase. An investor holding 100 shares receives annual income of $76.00.

The stock has posted a 58.7% gain over one year. SmarterDividends estimates fair value at $57.97 and classifies the shares as overvalued, corresponding to 21% downside to that estimate. The valuation assessment is separate from the A dividend-safety grade: coverage can be strong even when the yield is below the sector median and the market price is above estimated fair value.

What to watch

The immediate dates are November 13, 2026, when the stock trades ex-dividend, and December 10, 2026, when the next payment is scheduled. The company also lists a November 17, 2026, NYSE Industrials virtual investor event on its investor page.

The next earnings report will show whether broad market growth, margin improvement and cash conversion persisted through the fourth quarter. Orders, backlog, capital spending and debt reduction are the relevant operating markers because they determine how much cash remains after reinvestment and financing needs. Investors can also monitor whether the quarterly rate remains $0.20 through the next payment cycle, consistent with the company’s recent pattern of holding a new rate for several quarters.