Cass Information Systems, Inc (NASDAQ:CASS) Announces Dividend Increase - $0.34 Per Share

Key Points

• Cass Information Systems raised its quarterly dividend 6.3% to $0.34 per share, equivalent to $1.36 annually and a 2.4% yield. Shareholders of record on December 4 will receive payment on December 14.
• The dividend appears well covered, with a current payout ratio of 41.4% and an expected future payout ratio of 35.5% based on projected earnings.
• Cass shares rose 5.0% to $57.67, near their 52-week high, while the company reported quarterly earnings of $0.81 per share—slightly above analyst expectations.

Cass Information Systems, Inc (NASDAQ:CASS - Get Free Report) announced a quarterly dividend on Tuesday, October 20th. Shareholders of record on Friday, December 4th will be paid a dividend of $0.34 per share by the business services provider on Monday, December 14th. This represents a $1.36 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Friday, December 4th. This is a 6.3% increase from Cass Information Systems's previous quarterly dividend of $0.32.

Cass Information Systems has a dividend payout ratio of 41.4% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Cass Information Systems to earn $3.61 per share next year, which means the company should continue to be able to cover its $1.28 annual dividend with an expected future payout ratio of 35.5%.

Cass Information Systems Trading Up 5.0%

Shares of CASS stock traded up $2.77 on Thursday, hitting $57.67. 85,487 shares of the stock were exchanged, compared to its average volume of 79,342. The firm has a market capitalization of $738.75 million, a PE ratio of 20.74 and a beta of 0.39. Cass Information Systems has a one year low of $38.20 and a one year high of $59.63. The firm's 50 day moving average is $55.29 and its two-hundred day moving average is $51.74.

Cass Information Systems (NASDAQ:CASS - Get Free Report) last announced its quarterly earnings data on Thursday, October 22nd. The business services provider reported $0.81 earnings per share for the quarter, topping the consensus estimate of $0.80 by $0.01. Cass Information Systems had a return on equity of 14.89% and a net margin of 18.45%. The company had revenue of $27.53 million during the quarter, compared to analyst estimates of $52.29 million. On average, sell-side analysts expect that Cass Information Systems will post 2.98 earnings per share for the current year.

About Cass Information Systems

Cass Information Systems, Inc NASDAQ: CASS provides payment and information-processing services to businesses. Its offerings are designed to help companies manage, audit and analyze expenditures associated with transportation, utilities, telecommunications and other recurring business expenses.

The company's transportation services include freight invoice payment, auditing, rating, electronic data interchange and related information-management tools for shippers and logistics organizations.

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