Is VRT Stock's Premium Valuation Justified by its Dividend Potential?

Vertiv (VRT) announced a cash dividend of 2.5 cents per share for shareholders (as of Sept. 17), payable on Sept. 26. Its current dividend yield of 0.13%, and its payout ratio is 5%, which we believe is sustainable given VRT's improved liquidity position. As of June 30, 2024, Vertiv's cash balance totaled $579.7 million. Cash flow from operating activities was$378.4 million and free cash flow was $333.4 million for the second quarter. Overall liquidity strengthened to$1.2 billion. VRT Shares Trade at a Pr ...