The good times continued for Johnson Outdoors Inc. (NASDAQ:JOUT) as the maker of recreational equipment including boats and camping gear jumped 14% last month, according to data from S&P Global Market Intelligence.
The stock was up modestly through most of the month, riding momentum from a strong third-quarter earnings report in August, and then spiked on the last day of September when management said it would raise its dividend payout.
Management lifted its quarterly dividend 11% from $0.09 to $0.10 a share, rewarding shareholders after its strong performance this year. The increase marks the third consecutive annual increase since Johnson reinstituted its dividend in 2013 after suspending it during the recession.
CFO David Johnson said, "We have paid off our debt and continue to add to our healthy cash position. This dividend increase reflects our confidence in our business performance and strategic plans."
With the dividend hike, the company's dividend yield is still modest at 0.5%, but that's partly because shares have nearly doubled this year as profits have surged on strength in its fishing division.
With a new line of innovative products, a healthy economy encouraging discretionary spending, and a string of huge earnings beats, Johnson Outdoors stock looks like it's poised for continued growth.