Ericsson (NASDAQ:ERIC) Declares Dividend of $0.16

Key Points

• Ericsson declared a $0.1579 per-share dividend, payable to shareholders of record on September 29. The company’s annual dividend is approximately $0.28, with a 46.7% earnings payout ratio.
• Ericsson reported quarterly EPS of $0.13 on revenue of $5.43 billion, alongside a 10.72% net margin and 20.63% return on equity. Analysts expect roughly $0.61–$0.62 in EPS for the year ahead, supporting continued dividend coverage.
• Analyst sentiment remains mixed, with two Buy, five Hold and one Sell rating; the consensus rating is Hold with an $11.00 price target. Shares recently traded at $10.13, versus a 52-week range of $7.84 to $13.77.

Ericsson (NASDAQ:ERIC - Get Free Report) announced a dividend on Thursday, September 3rd. Stockholders of record on Tuesday, September 29th will be paid a dividend of 0.1579 per share by the communications equipment provider on Thursday, September 3rd. The ex-dividend date of this dividend is Tuesday, September 29th.

Ericsson has increased its dividend by an average of 0.1%per year over the last three years. Ericsson has a payout ratio of 46.7% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Ericsson to earn $0.62 per share next year, which means the company should continue to be able to cover its $0.28 annual dividend with an expected future payout ratio of 45.2%.

Ericsson Stock Performance

NASDAQ:ERIC traded up $0.09 during trading hours on Thursday, reaching $10.13. The company had a trading volume of 5,558,622 shares, compared to its average volume of 10,798,721. The firm has a market cap of $34.15 billion, a price-to-earnings ratio of 12.99, a PEG ratio of 1.85 and a beta of 0.95. The company has a current ratio of 1.12, a quick ratio of 0.89 and a debt-to-equity ratio of 0.21. The firm's 50 day moving average price is $10.27 and its 200-day moving average price is $11.29. Ericsson has a 52 week low of $7.84 and a 52 week high of $13.77.

Ericsson (NASDAQ:ERIC - Get Free Report) last announced its earnings results on Tuesday, June 30th. The communications equipment provider reported $0.13 earnings per share (EPS) for the quarter. Ericsson had a return on equity of 20.63% and a net margin of 10.72%.The business had revenue of $5.43 billion for the quarter. On average, analysts forecast that Ericsson will post 0.61 EPS for the current year.

Analyst Ratings Changes

Several equities analysts recently weighed in on ERIC shares. Danske upgraded Ericsson from a "hold" rating to a "buy" rating in a research report on Wednesday, July 15th. Citigroup restated a "neutral" rating on shares of Ericsson in a research report on Wednesday, July 15th. Finally, Weiss Ratings cut Ericsson from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, August 28th. Two investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $11.00.

Ericsson Company Profile

Ericsson AB is a Swedish multinational telecommunications equipment and services company headquartered in Stockholm. Founded in 1876 by Lars Magnus Ericsson, the company designs, develops and sells infrastructure, software and services that enable mobile and fixed-line networks worldwide. Ericsson serves a global customer base that includes mobile network operators, enterprise customers and public-sector organizations across Europe, the Americas, Asia-Pacific, the Middle East and Africa.

The company's core activities center on building and modernizing network infrastructure, with a particular focus on radio access networks (RAN), core network software, cloud-native solutions and network management systems.

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