CGI Group, Inc. (NYSE:GIB) Announces Quarterly Dividend of C$0.17

Key Points

• CGI announced a quarterly dividend of C$0.17 per share (annualized ~C$0.49) with an ex-dividend/record date of May 15 and payable on June 19, implying a yield of about 1.0%.
• The dividend is well-covered, with a current payout ratio of 7.6% and an expected future payout ratio of about 6.9% based on analysts' projected EPS, suggesting the company can sustain the payout.
• Shares fell sharply on the announcement, trading down to $65.57 (down $7.94) on heavy volume; CGI recently missed quarterly EPS estimates ($1.51 vs. $1.55) and reported revenue below expectations, while trading at a P/E of 12.28 and a market cap of about $14.1B.

CGI Group, Inc. (NYSE:GIB - Get Free Report) TSE: GIB.A announced a quarterly dividend on Wednesday, April 29th. Investors of record on Friday, May 15th will be given a dividend of 0.17 per share by the technology company on Friday, June 19th. This represents a c) dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Friday, May 15th.

CGI Group has a dividend payout ratio of 7.6% indicating that its dividend is sufficiently covered by earnings. Analysts expect CGI Group to earn $7.09 per share next year, which means the company should continue to be able to cover its $0.49 annual dividend with an expected future payout ratio of 6.9%.

CGI Group Price Performance

CGI Group stock traded down $7.94 during midday trading on Wednesday, reaching $65.57. 1,916,480 shares of the company were exchanged, compared to its average volume of 484,565. The company has a market capitalization of $14.08 billion, a price-to-earnings ratio of 12.28 and a beta of 0.58. The firm's 50-day simple moving average is $73.21 and its 200-day simple moving average is $82.90. CGI Group has a 1 year low of $61.90 and a 1 year high of $110.07. The company has a debt-to-equity ratio of 0.28, a quick ratio of 0.70 and a current ratio of 0.94.

CGI Group (NYSE:GIB - Get Free Report) TSE: GIB.A last posted its quarterly earnings data on Wednesday, January 28th. The technology company reported $1.51 EPS for the quarter, missing analysts' consensus estimates of $1.55 by ($0.04). The company had revenue of $2.96 billion for the quarter, compared to analysts' expectations of $4.08 billion. CGI Group had a return on equity of 18.61% and a net margin of 10.25%.The company's revenue for the quarter was up 7.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.97 EPS. On average, analysts anticipate that CGI Group will post 6.51 EPS for the current year.

About CGI Group

CGI Group Inc is a global information technology and business consulting firm that delivers a broad range of services including IT consulting, systems integration, application development and maintenance, infrastructure and network services, managed IT and business process outsourcing. The company works with clients to design, build and operate IT systems and business solutions, with capabilities spanning cloud and hybrid IT environments, cybersecurity, data analytics and artificial intelligence, digital transformation and enterprise resource planning implementations.

Founded in 1976 in Quebec by Serge Godin and André Imbeau, CGI has grown from a regional systems integrator into a multinational professional services organization.

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