Industrial company Badger Meter Inc., which had been considering a sale, said Friday that it instead planned to raise its dividend 15% and split its stock 2-for-1 in an effort to boost shareholder returns.

The Milwaukee company said that after reviewing its options, its board had determined this two-step plan was the best way to increase shareholder value.

The company makes meters and other products that measure water, oil and chemicals. Customers include oil-and-gas companies and municipal-water utilities, its largest segment by sales volume. In 2015, it reported that profit fell 13% to $25.9 million on $377.7 million in sales.

Chief Executive Richard A. Meeusen said Friday that Badger Meter intends to look for opportunities, including acquisitions, and further international expansion. Still, while the company is no longer pursuing a sale, Mr. Meeusen left the door open for possible deal-making.

"There's nothing precluding anyone from making an offer," the chief executive said.

The dividend of 23 cents a share, up from 20 cents, and the 2-for-1 split will be paid on Sept. 15 to shareholders of record Aug. 31.

Shares, up 21% this year, fell 6% to $66.98 in after-hours trading.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

August 12, 2016 18:15 ET (22:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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