Trane Technologies (TT), the former Ingersoll-Rand PLC, will raise its quarterly dividend by 13.6 percent to 67 cents per share in 2022. This follows a dividend hike of 11.3 percent to 59 cents per share in 2021 and marks the second year in a row of double digit dividend growth for TT. 

The dividend is payable March 31, 2022, to shareholders of record on March 4, 2022. The declaration was consistent with the company’s previously announced intention to increase the dividend by 14%. When combined with the dividend increase of 11% in the first quarter of 2021, the annual dividend is up 26% since launching as a company focused on climate innovation in March of 2020.

The Board of Directors also authorized a new share repurchase program of up to $3 billion, to commence upon the completion of the company’s 2021 $2 billion program. The 2021 program had approximately $1.05 billion remaining as of Jan 31, 2022.

“Today’s announcements reflect our strong balance sheet, liquidity position and continued confidence in our ability to generate strong future free cash flow,” said Dave Regnery, chair and CEO of Trane Technologies. “We remain committed to deploying 100% of excess cash over time through our balanced capital allocation strategy, which includes maintaining a competitive dividend that grows with earnings and repurchasing shares when they trade below the company’s calculated intrinsic value.”

The new dividend yield for Trane Technologies is 1.7% based on a stock price of $161.5 and an annual dividend rate of $2.68 per share.

Trane Technologies, known for its focus on ESG and solutions for a better climate, will now pay an annual dividend of $637 million to shareholders. Trane Technologies has paid consecutive quarterly cash dividends on its common shares since 1919 and annual dividends since 1910.

Trane Technologies, formerly Ingersoll-Rand Public Limited Company, provides products, services and solutions to improve the quality and comfort of air in homes and buildings, transport and protect food and perishables. The company's brand names include Trane and Thermo King. The company formerly known as Ingersoll-Rand has paid consecutive quarterly cash dividends on its common shares since 1919 and annual dividends since 1910.