Amdocs Limited (NASDAQ:DOX) Shareholders Set to Receive $0.57 Quarterly Dividend

Key Points

• Amdocs declared a quarterly dividend of $0.569 per share, payable January 29 to shareholders of record December 31. The annualized dividend is about $2.28, a 3.6% yield, and the company has raised its dividend for 14 consecutive years.
• The dividend appears supported by earnings: Amdocs has a 29.9% payout ratio, and analysts expect a 31.8% payout ratio based on next year’s projected earnings.
• Amdocs matched quarterly EPS and revenue estimates, with revenue up 3.8% year over year. Analysts’ consensus rating is Hold, with a consensus price target of $78.33.

Amdocs Limited (NASDAQ:DOX - Get Free Report) declared a quarterly dividend on Tuesday, November 3rd. Shareholders of record on Thursday, December 31st will be given a dividend of $0.5690 per share by the technology company on Friday, January 29th. This represents a $2.28 annualized dividend and a yield of 3.6%. The ex-dividend date is Thursday, December 31st.

Amdocs has increased its dividend by an average of 0.1% annually over the last three years and has increased its dividend annually for the last 14 consecutive years. Amdocs has a payout ratio of 29.9% indicating that its dividend is sufficiently covered by earnings. Analysts expect Amdocs to earn $7.14 per share next year, which means the company should continue to be able to cover its $2.27 annual dividend with an expected future payout ratio of 31.8%.

Amdocs Stock Down 1.7%

DOX stock opened at $62.43 on Wednesday. Amdocs has a 52 week low of $49.74 and a 52 week high of $85.63. The company has a quick ratio of 0.94, a current ratio of 0.94 and a debt-to-equity ratio of 0.23. The firm has a 50-day simple moving average of $60.65 and a 200-day simple moving average of $62.58. The stock has a market capitalization of $6.74 billion, a P/E ratio of 14.86, a P/E/G ratio of 1.01 and a beta of 0.42.

Amdocs (NASDAQ:DOX - Get Free Report) last issued its quarterly earnings results on Wednesday, November 4th. The technology company reported $1.98 earnings per share for the quarter, meeting analysts' consensus estimates of $1.98. Amdocs had a net margin of 9.75% and a return on equity of 20.28%. The firm had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same period last year, the company posted $1.83 EPS. Amdocs's quarterly revenue was up 3.8% compared to the same quarter last year. Equities analysts forecast that Amdocs will post 6.57 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages recently commented on DOX. Stifel Nicolaus dropped their price target on Amdocs from $71.00 to $46.00 and set a "buy" rating for the company in a research report on Wednesday. Wall Street Zen raised shares of Amdocs from a "hold" rating to a "buy" rating in a research note on Saturday, August 29th. Weiss Ratings raised shares of Amdocs from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, October 23rd. Finally, Oppenheimer cut shares of Amdocs from an "outperform" rating to a "market perform" rating in a research report on Wednesday. Three equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $78.33.

About Amdocs

Amdocs Ltd. NASDAQ: DOX is a global provider of software and technology services for communications, media and entertainment companies. Its solutions help service providers manage customer relationships, billing, subscriptions, product offerings and digital experiences across consumer and enterprise markets.

The company's portfolio includes business support systems and operational support systems, cloud-based software, artificial intelligence and automation tools, network and service management platforms, and solutions for media distribution and monetization.

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