Intuit Inc. (NASDAQ:INTU) Declares Dividend Increase - $1.38 Per Share

Key Points

• Intuit raised its quarterly dividend 15% to $1.38 per share, payable October 16 to shareholders of record on October 8. The dividend yields approximately 1.6%, and the company has increased payouts for 13 consecutive years.
• The dividend appears well covered, with a payout ratio of 20.9%; analysts expect next year’s earnings to support an estimated 22.8% payout ratio.
• Intuit’s latest quarterly results exceeded expectations, with adjusted earnings of $4.03 per share and revenue of $4.35 billion, up 13.7% year over year.

Intuit Inc. (NASDAQ:INTU - Get Free Report) declared a quarterly dividend on Tuesday, August 25th. Investors of record on Thursday, October 8th will be paid a dividend of 1.38 per share by the software maker on Friday, October 16th. This represents a c) annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Thursday, October 8th. This is a 15.0% increase from Intuit's previous quarterly dividend of $1.20.

Intuit has raised its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 13 years. Intuit has a dividend payout ratio of 20.9% indicating that its dividend is sufficiently covered by earnings. Analysts expect Intuit to earn $21.06 per share next year, which means the company should continue to be able to cover its $4.80 annual dividend with an expected future payout ratio of 22.8%.

Intuit Stock Performance

Shares of INTU traded down $13.22 during mid-day trading on Wednesday, hitting $344.24. The company's stock had a trading volume of 8,185,799 shares, compared to its average volume of 4,376,035. Intuit has a one year low of $252.84 and a one year high of $705.08. The stock's 50-day moving average is $302.38 and its two-hundred day moving average is $357.99. The firm has a market capitalization of $94.16 billion, a PE ratio of 20.85, a price-to-earnings-growth ratio of 1.16 and a beta of 0.97. The company has a debt-to-equity ratio of 0.26, a quick ratio of 1.45 and a current ratio of 1.45.

Intuit (NASDAQ:INTU - Get Free Report) last released its earnings results on Tuesday, August 25th. The software maker reported $4.03 earnings per share for the quarter, topping analysts' consensus estimates of $3.58 by $0.45. The business had revenue of $4.35 billion for the quarter, compared to the consensus estimate of $4.27 billion. Intuit had a return on equity of 25.18% and a net margin of 21.91%.The firm's revenue for the quarter was up 13.7% compared to the same quarter last year. During the same period last year, the business earned $2.75 earnings per share. Intuit has set its Q1 2027 guidance at 2.440-2.480 EPS and its FY 2027 guidance at 22.880-23.120 EPS. As a group, sell-side analysts anticipate that Intuit will post 18.19 EPS for the current year.

Insiders Place Their Bets

In related news, Director Richard L. Dalzell sold 284 shares of the firm's stock in a transaction on Tuesday, June 23rd. The stock was sold at an average price of $262.32, for a total transaction of $74,498.88. Following the completion of the transaction, the director directly owned 11,758 shares of the company's stock, valued at $3,084,358.56. This trade represents a 2.36% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,239 shares of company stock valued at $348,354 in the last three months. Corporate insiders own 2.49% of the company's stock.

Hedge Funds Weigh In On Intuit

A number of hedge funds have recently bought and sold shares of INTU. Rakuten Investment Management Inc. grew its position in Intuit by 522.3% during the 4th quarter. Rakuten Investment Management Inc. now owns 51,697 shares of the software maker's stock valued at $34,852,000 after purchasing an additional 43,389 shares during the last quarter. Bank of New York Mellon Corp increased its position in shares of Intuit by 20.3% during the fourth quarter. Bank of New York Mellon Corp now owns 2,791,212 shares of the software maker's stock valued at $1,848,954,000 after acquiring an additional 471,451 shares in the last quarter. Vestcor Inc increased its position in shares of Intuit by 79.1% during the fourth quarter. Vestcor Inc now owns 20,717 shares of the software maker's stock valued at $13,723,000 after acquiring an additional 9,148 shares in the last quarter. Janney Montgomery Scott LLC raised its holdings in Intuit by 119.5% in the 1st quarter. Janney Montgomery Scott LLC now owns 86,618 shares of the software maker's stock worth $37,452,000 after acquiring an additional 47,148 shares during the last quarter. Finally, O Shaughnessy Asset Management LLC lifted its position in Intuit by 13.2% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 59,974 shares of the software maker's stock valued at $39,728,000 after acquiring an additional 6,999 shares in the last quarter. Institutional investors own 83.66% of the company's stock.

About Intuit

Intuit Inc NASDAQ: INTU is a financial software company headquartered in Mountain View, California, that develops and sells cloud-based financial management and compliance products for individuals, small businesses, self-employed workers and accounting professionals. Founded in 1983 by Scott Cook and Tom Proulx, the company has grown from desktop tax and accounting software into a diversified provider of online financial tools. As of my latest update, Sasan Goodarzi serves as Chief Executive Officer.

Intuit's product portfolio includes QuickBooks, its flagship accounting and business-management platform that offers bookkeeping, payroll, payments and invoicing capabilities; TurboTax, a tax-preparation and filing service aimed at individual taxpayers; and Mint, a consumer personal-finance and budgeting app.

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