Badger Meter is Quietly Building a Strong Dividend Growth Record

Badger Meter, Inc. has been steadily raising its dividend for 34 consecutive years, culminating in a 10% increase to $1.76 per share in 2026. This aligns with the company's 34-year history of raising its annual dividend, showing a strong commitment to returning value to shareholders. The latest increase is supported by a robust business that consistently generates significant cash flow, with $183.7 million in operating cash flow and $169.7 million in free cash flow in 2025.

The balance sheet provides a solid cushion, with $226 million in net cash and no borrowings at the end of 2025. The payout ratio remains conservative, with the new dividend being about 37% of diluted earnings per share. While the dividend appears well-supported, investors should consider the company's acquisition strategy, as recent deals have consumed significant cash.

Despite some short-term earnings weakness, Badger Meter's dividend looks safe and has the potential for continued growth, making it an attractive option for long-term dividend growth investors.