Ambev S.A. (NYSE:ABEV) Raises Dividend to $0.02 Per Share

Key Points

• Ambev S.A. (NYSE:ABEV) has increased its dividend to $0.02 per share, marking a 4.7% rise from its previous dividend.
• Shareholders on record as of August 11th will receive the dividend on October 14th, with an impressive yield of 660.0%.
• Ambev's dividend payout ratio stands at 83.3%, indicating current coverage by earnings, but future sustainability may be at risk if earnings decline.

Ambev S.A. (NYSE:ABEV - Get Free Report) declared a -- dividend on Monday, August 4th, Wall Street Journal reports. Shareholders of record on Monday, August 11th will be paid a dividend of 0.023 per share on Tuesday, October 14th. This represents a yield of 660.0%. The ex-dividend date of this dividend is Monday, August 11th. This is a 4.7% increase from Ambev's previous -- dividend of $0.02.

Ambev has a dividend payout ratio of 83.3% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Equities research analysts expect Ambev to earn $0.17 per share next year, which means the company should continue to be able to cover its $0.15 annual dividend with an expected future payout ratio of 88.2%.

Ambev Price Performance

ABEV traded up $0.03 during trading on Monday, hitting $2.21. 16,011,247 shares of the stock traded hands, compared to its average volume of 33,783,465. The business has a 50 day moving average price of $2.41 and a 200 day moving average price of $2.27. The company has a market cap of $34.75 billion, a price-to-earnings ratio of 13.78, a PEG ratio of 2.31 and a beta of 0.74. The company has a debt-to-equity ratio of 0.02, a current ratio of 1.11 and a quick ratio of 0.80. Ambev has a twelve month low of $1.76 and a twelve month high of $2.63.

Ambev (NYSE:ABEV - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $0.03 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.03. The company had revenue of $3.59 billion during the quarter, compared to the consensus estimate of $21.84 billion. Ambev had a net margin of 16.18% and a return on equity of 15.39%. Equities research analysts forecast that Ambev will post 0.18 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Ambev

Several large investors have recently modified their holdings of ABEV. Commonwealth Equity Services LLC grew its stake in Ambev by 9.1% in the 4th quarter. Commonwealth Equity Services LLC now owns 108,271 shares of the company's stock valued at $200,000 after buying an additional 9,040 shares in the last quarter. American Century Companies Inc. grew its stake in Ambev by 6.4% in the 4th quarter. American Century Companies Inc. now owns 2,232,357 shares of the company's stock valued at $4,130,000 after buying an additional 135,132 shares in the last quarter. LPL Financial LLC grew its stake in Ambev by 36.8% in the 4th quarter. LPL Financial LLC now owns 808,204 shares of the company's stock valued at $1,495,000 after buying an additional 217,527 shares in the last quarter. JPMorgan Chase & Co. grew its stake in Ambev by 2,385.2% in the 4th quarter. JPMorgan Chase & Co. now owns 2,005,614 shares of the company's stock valued at $3,710,000 after buying an additional 1,924,912 shares in the last quarter. Finally, O Shaughnessy Asset Management LLC grew its position in shares of Ambev by 5.6% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 264,153 shares of the company's stock valued at $489,000 after purchasing an additional 14,042 shares in the last quarter. Hedge funds and other institutional investors own 8.13% of the company's stock.

Ambev Company Profile

Ambev SA, through its subsidiaries, engages in the production, distribution, and sale of beer, draft beer, carbonated soft drinks, malt and food, other alcoholic beverages, and non-alcoholic and non-carbonated products in Brazil, Central America and Caribbean, Latin America South, and Canada. It offers beer primarily under the Skol, Brahma, Antarctica, Brahva, Budweiser, Bud Light, Beck, Leffe, Hoegaarden, Balboa ICE, Balboa, Atlas Golden Light, Atlas, Bucanero, Cristal, Mayabe, Presidente, Presidente Light, Brahma Light, Bohemia, The One, Corona, Modelo Especial, Stella Artois, Quilmes Clásica, Paceña, Taquiña, Huari, Becker, Cusqueña, Michelob Ultra, Busch, Pilsen, Ouro Fino, Bud 66, Banks, Deputy, Patricia, Labatt Blue, Alexander Keith's, and Kokanee brands.

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