Donaldson Boosts Dividend

The Minnesota filter company also says it will bring some foreign earnings back to the States.
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Donaldson

(DCI) - Get Report

boosted its quarterly dividend by a third and set plans to repatriate some foreign earnings.

The Minneapolis-based filter company said it would pay an 8-cent dividend Sept. 9 to holders of record Aug. 19. Donaldson said the move came as its board cleared the company to pay out 20%-30% of earnings through dividends, up from the previous standard of 20%-25%. Donaldson had been paying 6 cents a quarter.

Donaldson also said it would repatriate some $80 million of foreign earnings in 2006 under the American Jobs Creation Act of 2004. The company said the move would lead to a fourth-quarter charge of $5.6 million, or 6 cents a share, to cover taxes. Donaldson said it may repatriate more foreign profits next year.

Early Monday, Donaldson rose 22 cents to $32.80.