Chemed Corporation (NYSE:CHE) to Issue Dividend Increase - $0.70 Per Share

Key Points

• Chemed raised its quarterly dividend 16.7% to $0.70 per share, payable September 3 to shareholders of record on August 17. The increase brings the annualized dividend to $2.80, with an approximately 0.5% yield.
• The company has increased its dividend for 16 consecutive years, and its low 8.7% payout ratio indicates strong earnings coverage; analysts expect a future payout ratio of about 9.4%.
• Chemed exceeded quarterly expectations, reporting $6.06 in adjusted earnings per share versus the $5.60 consensus and $673.25 million in revenue, up 8.8% year over year.

Chemed Corporation (NYSE:CHE - Get Free Report) declared a quarterly dividend on Thursday, August 6th. Investors of record on Monday, August 17th will be paid a dividend of 0.70 per share on Thursday, September 3rd. This represents a c) dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Monday, August 17th. This is a 16.7% increase from Chemed's previous quarterly dividend of $0.60.

Chemed has raised its dividend by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 16 years. Chemed has a payout ratio of 8.7% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Chemed to earn $25.45 per share next year, which means the company should continue to be able to cover its $2.40 annual dividend with an expected future payout ratio of 9.4%.

Chemed Stock Performance

NYSE CHE opened at $549.01 on Friday. The company has a market capitalization of $7.18 billion, a PE ratio of 27.57, a price-to-earnings-growth ratio of 2.07 and a beta of 0.51. The company has a debt-to-equity ratio of 0.17, a quick ratio of 0.89 and a current ratio of 0.91. Chemed has a 52-week low of $365.20 and a 52-week high of $551.74. The company has a 50-day simple moving average of $475.46 and a 200 day simple moving average of $439.05.

Chemed (NYSE:CHE - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The company reported $6.06 earnings per share for the quarter, topping the consensus estimate of $5.60 by $0.46. Chemed had a return on equity of 31.77% and a net margin of 10.60%.The company had revenue of $673.25 million during the quarter, compared to analyst estimates of $665.04 million. During the same quarter last year, the firm posted $4.27 EPS. The firm's revenue for the quarter was up 8.8% on a year-over-year basis. Chemed has set its FY 2026 guidance at 25.000-25.750 EPS. On average, research analysts predict that Chemed will post 23.18 EPS for the current year.

Insider Activity

In other news, Director Patrick P. Grace sold 190 shares of the company's stock in a transaction on Friday, July 31st. The shares were sold at an average price of $532.00, for a total value of $101,080.00. Following the transaction, the director owned 3,533 shares of the company's stock, valued at approximately $1,879,556. This represents a 5.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Andrea R. Lindell sold 1,347 shares of Chemed stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $447.33, for a total value of $602,553.51. Following the sale, the director directly owned 4,578 shares of the company's stock, valued at $2,047,876.74. This represents a 22.73% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 3,537 shares of company stock worth $1,782,654 in the last three months. Corporate insiders own 3.33% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Monetary Solutions Ltd purchased a new stake in Chemed in the fourth quarter valued at approximately $25,000. Los Angeles Capital Management LLC bought a new position in shares of Chemed in the 4th quarter worth $26,000. BOK Financial Private Wealth Inc. bought a new position in shares of Chemed in the 4th quarter worth $27,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Chemed during the 2nd quarter valued at $34,000. Finally, Versant Capital Management Inc lifted its holdings in shares of Chemed by 7,500.0% during the 2nd quarter. Versant Capital Management Inc now owns 76 shares of the company's stock worth $35,000 after acquiring an additional 75 shares during the last quarter. Hedge funds and other institutional investors own 95.85% of the company's stock.

Chemed Company Profile

Chemed Corporation is a diversified provider of essential home services and healthcare solutions in the United States. Headquartered in Cincinnati, Ohio, the company operates through two principal business segments—Roto-Rooter and Vitas Healthcare. Since its founding in 1974, Chemed has built a reputation for reliability and expertise, serving both residential and commercial customers across a broad range of markets.

The Roto-Rooter segment offers a comprehensive suite of plumbing, drain cleaning and water restoration services.

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