15 Low Profile Dividend Champions to Buy

5. Tennant Company (NYSE:TNC)

Number of Hedge Fund Holders: 34

Tennant Company (NYSE:TNC) is a Minnesota-based company that holds a leading position worldwide in producing mechanized cleaning equipment, including scrubbers, sweepers, pressure washers, vacuums, and autonomous mobile robots. The company’s current investment appeal largely depends on the success of its latest innovation push—autonomous mobile robots (AMRs). These robots significantly enhance labor efficiency for customers and have the potential to drive the company’s stock higher. From 2018 to 2023, Tennant sold approximately 6,500 units of its earlier AMR models.

In the fourth quarter of 2024, Tennant Company (NYSE:TNC) reported revenue of $328.9 million, which showed a 5.6% growth from the same period last year. The revenue also beat analysts’ estimates by $5.63 million. The company reported full-year adjusted EBITDA of $208.8 million, reflecting an 8.2% increase from 2023. Its adjusted EBITDA margin for the year rose to 16.2%, up 70 basis points, supported by robust sales growth that led to greater operating leverage compared to the previous year.

Tennant Company (NYSE:TNC)’s cash position also came in strong as the company generated $89.7 million in operating cash flow in FY24. The company also remained committed to its shareholder return, distributing $41 million to investors through a combination of dividends and share repurchases. It currently offers a quarterly dividend of $0.295 per share and has a dividend yield of 1.68%, as of April 17. The company has been rewarding shareholders with growing dividends for the past 53 consecutive years, which makes TNC one of the best Dividend Champions on our list.