Sterne Agee CRT initiated coverage of the distribution group. The firm says that expectations for the group "remain extremely low," while the sector should benefit from easier comps in 2H16 and balance sheet catalysts. It identifies Grainger (GWW) and HD Supply (HDS) as two of its favorite names in the space, citing low expectations for the former and end market catalysts for the latter. It initiated coverage of both stocks with Buy ratings.

W.W. Grainger's board of directors approved a quarterly cash dividend of $2.05 per share, an increase of 10% from the most recent company dividend of $1.86 per share. The dividend is payable on June 1, to shareholders of record on May 13. In addition, the board approved the repurchase of up to 5M shares of the company's outstanding common stock, replacing the company's existing repurchase authorization. The new repurchase authorization has no expiration date. "2024 is on track to be our 53rd consecutive year of increased dividends, upholding Grainger's long-standing commitment to our shareholders. This increase, together with our updated share repurchase authorization, reinforces our ability to continue investing in the business while also returning excess cash to shareholders," said D.G. Macpherson, Grainger CEO.