Acuity (AYI) Approves $0.20 Dividend as Capital Allocation Confidence Grows

We recently published an article titled 13 Best Internet of Things (IoT) Stocks to Buy Now.

On January 22, the board of directors of Acuity Inc. (NYSE:AYI) approved a 17% increase in the quarterly dividend to $0.20 per share from $0.17 per share. The dividend is payable on February 13 to shareholders of record as of February 2, underscoring management’s confidence in the company’s cash flow generation and capital allocation framework.

On January 12, Morgan Stanley analyst Christopher Snyder reduced the firm’s price target on Acuity Inc. (NYSE:AYI) to $410 from $425 while maintaining an Overweight rating. Although fiscal first-quarter earnings per share exceeded expectations and forward revisions remained stable, the shares declined 13% following softer margins within the ABL segment and investor concerns regarding potential pull-forward effects in Q1 demand and longer-term pricing power. Morgan Stanley characterized the post-earnings selloff as an attractive entry point, suggesting that near-term margin variability does not alter the company’s structural positioning. The combination of dividend growth, earnings resilience, and a discounted valuation following the correction strengthens the argument for accumulating shares at current levels, particularly given Acuity’s exposure to energy-efficient retrofits and smart building upgrades.

Acuity Inc. (NYSE:AYI), headquartered in Atlanta, Georgia, is an industrial technology company operating across North America, Europe, and Asia. Through its Intelligent Spaces Group and Atrius platform, the company integrates IoT-enabled lighting and building management solutions that transform luminaires into data-generating network nodes.

While we acknowledge the potential of AYI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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