Kelly Services, Inc. (NASDAQ:KELYA) Shares Will Pay Quarterly Dividend of $0.07

Key Points

• Kelly Services declared a quarterly dividend of $0.075 per share, payable December 2 to shareholders of record November 18. The annualized dividend is $0.30 per share, a yield of about 2.1%.
• The dividend appears well covered: the current payout ratio is 10.9%, and analysts expect next year’s earnings to cover the annual dividend at a projected payout ratio of 16.4%.
• Kelly Services reported quarterly EPS of $0.07, in line with estimates, and revenue of $927.2 million, slightly above expectations. Analysts’ consensus rating is Hold, with an average price target of $20.

Kelly Services, Inc. (NASDAQ:KELYA - Get Free Report) declared a quarterly dividend on Thursday, November 5th. Stockholders of record on Wednesday, November 18th will be paid a dividend of $0.0750 per share by the business services provider on Wednesday, December 2nd. This represents a $0.30 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend is Wednesday, November 18th.

Kelly Services has increased its dividend by an average of 0.3% annually over the last three years. Kelly Services has a dividend payout ratio of 10.9% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Kelly Services to earn $1.83 per share next year, which means the company should continue to be able to cover its $0.30 annual dividend with an expected future payout ratio of 16.4%.

Kelly Services Stock Down 16.9%

KELYA opened at $14.05 on Friday. Kelly Services has a 1-year low of $7.98 and a 1-year high of $17.75. The business has a 50 day moving average of $16.22 and a 200-day moving average of $12.62. The stock has a market capitalization of $487.98 million, a price-to-earnings ratio of -1.80, a P/E/G ratio of 1.18 and a beta of 0.93. The company has a current ratio of 1.50, a quick ratio of 1.50 and a debt-to-equity ratio of 0.08.

Kelly Services (NASDAQ:KELYA - Get Free Report) last released its earnings results on Thursday, November 5th. The business services provider reported $0.07 EPS for the quarter, meeting the consensus estimate of $0.07. Kelly Services had a negative net margin of 6.73% and a positive return on equity of 2.69%. The firm had revenue of $927.20 million during the quarter, compared to analysts' expectations of $925.87 million. As a group, sell-side analysts anticipate that Kelly Services will post 1.10 earnings per share for the current year.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on KELYA shares. Weiss Ratings upgraded shares of Kelly Services from a "sell (d)" rating to a "sell (d+)" rating in a report on Wednesday. Barrington Research increased their target price on shares of Kelly Services from $15.00 to $20.00 and gave the company an "outperform" rating in a research note on Monday, August 10th. Finally, Wall Street Zen raised Kelly Services from a "hold" rating to a "buy" rating in a research report on Saturday, October 10th. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $20.00.

Kelly Services Company Profile

Kelly Services, Inc is a workforce solutions company that provides staffing, recruiting, and talent-management services to employers. The company helps organizations address temporary, contract, direct-hire, and outsourced workforce needs across a range of industries and skill levels.

Its offerings include professional and industrial staffing, office and administrative support, science and engineering talent, education staffing, contact-center solutions, and workforce outsourcing and consulting.

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