Baxter International Inc. (NYSE:BAX) to Issue Quarterly Dividend of $0.01

Key Points

• Baxter announced a quarterly dividend of $0.01 per share, payable July 1 to holders of record on May 29 (ex-dividend date May 29), implying an annualized dividend of $0.04 and a yield of about 0.2%.
• The dividend is very conservatively covered with a payout ratio around 1.5% (analysts expect ~ $2.03 EPS next year implying a future payout ratio near 2.0%), and Baxter has trimmed its dividend by about 0.1% per year on average over the past three years.
• In the latest quarter Baxter beat estimates with EPS of $0.36 (vs. $0.31 expected) and revenue of $2.70 billion (vs. $2.62 billion expected), with revenue up 2.9% year‑over‑year; the stock trades near $17.50 with a 12‑month range of $15.73–$32.68.

Baxter International Inc. (NYSE:BAX - Get Free Report) announced a quarterly dividend on Wednesday, April 29th. Investors of record on Friday, May 29th will be given a dividend of 0.01 per share by the medical instruments supplier on Wednesday, July 1st. This represents a c) annualized dividend and a yield of 0.2%. The ex-dividend date is Friday, May 29th.

Baxter International has decreased its dividend by an average of 0.1%per year over the last three years. Baxter International has a payout ratio of 1.5% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Baxter International to earn $2.03 per share next year, which means the company should continue to be able to cover its $0.04 annual dividend with an expected future payout ratio of 2.0%.

Baxter International Price Performance

NYSE:BAX traded down $0.08 during trading hours on Friday, hitting $17.50. The company's stock had a trading volume of 5,061,300 shares, compared to its average volume of 9,474,535. The stock has a fifty day simple moving average of $17.92 and a 200-day simple moving average of $19.18. The company has a market capitalization of $9.03 billion, a P/E ratio of -9.45, a PEG ratio of 1.20 and a beta of 0.62. The company has a debt-to-equity ratio of 1.55, a current ratio of 2.31 and a quick ratio of 1.56. Baxter International has a twelve month low of $15.73 and a twelve month high of $32.68.

Baxter International (NYSE:BAX - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The medical instruments supplier reported $0.36 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.05. The business had revenue of $2.70 billion for the quarter, compared to analyst estimates of $2.62 billion. Baxter International had a positive return on equity of 16.95% and a negative net margin of 8.51%.Baxter International's revenue was up 2.9% compared to the same quarter last year. During the same period last year, the firm posted $0.62 earnings per share. On average, analysts anticipate that Baxter International will post 1.91 EPS for the current fiscal year.

About Baxter International

Baxter International Inc is a global healthcare company that develops, manufactures and markets a broad portfolio of medical products, pharmaceutical therapies and biotechnology-based solutions. The company's primary business activities are organized around renal care, medication delivery, acute therapies, pharmacy automation, surgical care and biotechnology. Baxter's offerings are designed to support patient care in hospitals, dialysis centers, nursing homes and other healthcare facilities worldwide.

In the renal care segment, Baxter provides hemodialysis and peritoneal dialysis systems, water treatment equipment and related disposables, including dialyzers, bloodlines and catheters.

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