Oct. 20, 2020, 1:27 p.m. EDT

Brunswick stock surges after analyst upgrade, dividend boosted by 12.5%

Brunswick Corp. (NYS:BC) said Tuesday that it's raising its quarterly dividend by 12.5%, to 27 cents a share from 24 cents. The recreational boat and engines maker said the new dividend will be payable Dec. 18 to shareholders of record on Nov. 24. The stock rallied 6.2% in afternoon trading, putting it on track to close at a 2 1/2-month high. Based on current stock prices, the new annual dividend rate implies a dividend yield of 1.62%, compared with the implied yield for the S&P 500 (S&P:SPX) of 1.64%, according to FactSet. The stock was also getting a boost Tuesday after J.P. Morgan analyst Grace Smalley upgraded it to overweight, after being at neutral since July 2019, and raised the price target to $79 from $68. "We see the recent acceleration in boat sales (=COVID-19 beneficiary) leading to lean channel inventories with restocking demand driving a positive inflection in [Brunswick's] top- and bottom-line earnings growth in 2H20/2021," Smalley wrote in a note to clients. Brunswick is scheduled to report third-quarter results on Oct. 29, before the opening bell. The FactSet consensus is for earnings per share of $1.38 on revenue of $1.08 billion.

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