Published on 16 Apr 2024 on Zacks via Yahoo Finance
Here's Why Investors Should Retain Nordson (NDSN) Stock
Nordson Corporation NDSN has been benefiting from strength in the Industrial Precision Solutions segment, driven by growing popularity for its industrial coatings, polymer processing and non-woven product lines. Solid demand for the medical interventional solutions product line is aiding the Medical and Fluid Solutions segment’s revenues. In the quarters ahead, investments in automation, artificial intelligence, memory and electronic product innovation are expected to drive Nordson’s growth.The company intends to strengthen and expand its businesses through buyouts. Nordson’s acquisition of ARAG Group in August 2023 expanded its core capabilities in precision dispensing technology, helping the company foray into the rapidly growing precision agriculture end-market. Also, the buyout of CyberOptics Corporation in November 2022 expanded its semiconductor test and inspection capabilities. In the first quarter of fiscal 2024 (ended January 2024), acquired assets boosted the company’s total revenues by 5.4%.NDSN remains committed to rewarding shareholders through dividend payouts and share repurchases. In the first quarter of fiscal 2024, it paid out dividends of $38.9 million and bought back shares worth $7.4 million. Also, the company hiked its dividend by 5% to 68 cents per share in August 2023.
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