ARKO Corp. (NASDAQ:ARKO) to Issue $0.03 Quarterly Dividend

Key Points

• ARKO declared a $0.03 quarterly dividend (annualized $0.12) payable May 29 to shareholders of record on May 18, which implies a 1.8% yield.
• The company currently has a payout ratio of 300%, meaning recent earnings don't cover the dividend and payments rely on the balance sheet, but analysts forecast $0.36 EPS next year (implying a future payout ratio near 33.3%).
• ARKO beat quarterly expectations with a ($0.07) EPS versus a ($0.16) consensus and $1.77B revenue versus $1.65B expected, and shares rose about 2.9% to $6.71 on above-average volume.

ARKO Corp. (NASDAQ:ARKO - Get Free Report) declared a quarterly dividend on Thursday, May 7th. Investors of record on Monday, May 18th will be given a dividend of 0.03 per share on Friday, May 29th. This represents a c) annualized dividend and a yield of 1.8%. The ex-dividend date is Monday, May 18th.

ARKO has a payout ratio of 300.0% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect ARKO to earn $0.36 per share next year, which means the company should continue to be able to cover its $0.12 annual dividend with an expected future payout ratio of 33.3%.

ARKO Stock Up 2.9%

Shares of NASDAQ ARKO traded up $0.19 during midday trading on Thursday, hitting $6.71. 1,275,884 shares of the company's stock were exchanged, compared to its average volume of 751,991. The firm's fifty day simple moving average is $5.90 and its 200-day simple moving average is $5.28. The company has a market cap of $752.73 million, a PE ratio of 47.93 and a beta of 0.94. ARKO has a twelve month low of $3.71 and a twelve month high of $7.07. The company has a debt-to-equity ratio of 4.02, a current ratio of 1.66 and a quick ratio of 1.22.

ARKO (NASDAQ:ARKO - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported ($0.07) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.16) by $0.09. The firm had revenue of $1.77 billion during the quarter, compared to the consensus estimate of $1.65 billion. ARKO had a return on equity of 8.58% and a net margin of 0.30%.During the same period in the prior year, the company posted ($0.12) earnings per share. Research analysts predict that ARKO will post 0.26 EPS for the current fiscal year.

ARKO Company Profile

ARKO Corp NASDAQ: ARKO is a downstream energy and convenience retail company based in Matthews, North Carolina. The company's core operations encompass fuel supply, distribution and retailing through a network of terminals, independent dealer locations and company-operated convenience stores. ARKO's fuel offerings include branded and unbranded gasoline and diesel, as well as lubricants and other petroleum products marketed under various regional and private labels.

In its retail segment, ARKO operates a portfolio of convenience stores under the Kangaroo Express banner, serving on-site customers with fuel, grab-and-go food items, beverages and everyday household essentials.

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