Cintas Corporation (NASDAQ:CTAS) Shareholders to Get $0.52 Quarterly Dividend

Key Points

• Cintas declared a quarterly dividend of $0.52 per share, payable December 15 to shareholders of record November 13. The dividend equates to $2.08 annually and a 1.0% yield.
• Cintas has raised its dividend for 42 consecutive years, with a 39.0% payout ratio; analysts expect future earnings to cover the dividend comfortably.
• The company recently exceeded quarterly earnings and revenue estimates, while analysts maintain a “Moderate Buy” consensus with an average price target of $218.50.

Cintas Corporation (NASDAQ:CTAS - Get Free Report) declared a quarterly dividend on Tuesday, October 27th. Shareholders of record on Friday, November 13th will be given a dividend of $0.52 per share by the business services provider on Tuesday, December 15th. This represents a $2.08 annualized dividend and a yield of 1.0%. The ex-dividend date is Friday, November 13th.

Cintas has increased its dividend payment by an average of 0.1% annually over the last three years and has raised its dividend every year for the last 42 years. Cintas has a dividend payout ratio of 39.0% meaning its dividend is sufficiently covered by earnings. Research analysts expect Cintas to earn $6.14 per share next year, which means the company should continue to be able to cover its $2.08 annual dividend with an expected future payout ratio of 33.9%.

Cintas Price Performance

NASDAQ CTAS opened at $214.80 on Wednesday. Cintas has a fifty-two week low of $161.16 and a fifty-two week high of $226.68. The stock's 50-day moving average is $203.56 and its two-hundred day moving average is $190.13. The firm has a market cap of $85.29 billion, a P/E ratio of 42.37 and a beta of 0.92.

Cintas (NASDAQ:CTAS - Get Free Report) last released its quarterly earnings results on Wednesday, September 23rd. The business services provider reported $1.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.35 by $0.04. The company had revenue of $3.01 billion for the quarter, compared to the consensus estimate of $2.98 billion. The business's revenue was up 10.9% compared to the same quarter last year. During the same quarter last year, the company posted $1.20 EPS. Cintas has set its FY 2027 guidance at 5.450-5.540 EPS. On average, equities analysts expect that Cintas will post 5.53 EPS for the current year.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on the company. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $206.00 target price on shares of Cintas in a research report on Thursday, September 24th. Jefferies Financial Group lifted their price target on shares of Cintas from $200.00 to $210.00 and gave the company a "hold" rating in a research report on Thursday, July 16th. Citigroup boosted their price objective on shares of Cintas from $180.00 to $181.00 and gave the stock a "sell" rating in a research note on Wednesday, September 30th. Bank of America raised shares of Cintas from a "neutral" rating to a "buy" rating and upped their price objective for the stock from $200.00 to $230.00 in a report on Thursday, July 16th. Finally, Argus upped their price objective on shares of Cintas from $230.00 to $240.00 and gave the stock a "buy" rating in a report on Tuesday, September 29th. Ten investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Cintas currently has an average rating of "Moderate Buy" and a consensus price target of $218.50.

Cintas Company Profile

Cintas Corporation provides workplace products and services to businesses and other organizations, primarily in the United States and Canada. The company is best known for designing, supplying, laundering and maintaining uniforms, workwear and related apparel for employees across a range of industries.

Its offerings also include facility services such as entrance mats, restroom supplies, hygiene products, janitorial supplies and document management. Through its first aid and safety business, Cintas provides first-aid products, safety training and related workplace solutions.

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