Methode Electronics, Inc. (NYSE:MEI) to Issue $0.05 Quarterly Dividend

Key Points

• Methode Electronics declared a quarterly dividend of $0.05 per share, payable October 30 to shareholders of record on October 16. The dividend implies a 1.5% annualized yield, with October 16 as the ex-dividend date.
• The dividend is currently supported by earnings, with a 25% payout ratio, but analysts expect a loss of $0.16 per share next year, potentially leaving the company unable to cover its $0.20 annual dividend.
• Methode reported quarterly revenue of $265.4 million and an EPS loss of $0.22, both better than analysts’ expectations. Institutional investors own approximately 95.49% of the company’s shares.

Methode Electronics, Inc. (NYSE:MEI - Get Free Report) announced a quarterly dividend on Wednesday, September 16th. Stockholders of record on Friday, October 16th will be given a dividend of 0.05 per share by the electronics maker on Friday, October 30th. This represents a c) annualized dividend and a dividend yield of 1.5%. The ex-dividend date is Friday, October 16th.

Methode Electronics has decreased its dividend by an average of 0.1%per year over the last three years. Methode Electronics has a dividend payout ratio of 25.0% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Methode Electronics to earn ($0.16) per share next year, which means the company may not be able to cover its $0.20 annual dividend with an expected future payout ratio of -125.0%.

Methode Electronics Trading Up 0.6%

Shares of Methode Electronics stock opened at $13.24 on Thursday. Methode Electronics has a 1 year low of $4.88 and a 1 year high of $20.38. The company's fifty day simple moving average is $15.65 and its 200-day simple moving average is $11.79. The company has a market cap of $472.15 million, a price-to-earnings ratio of -12.73 and a beta of 1.54. The company has a current ratio of 2.41, a quick ratio of 1.65 and a debt-to-equity ratio of 0.47.

Methode Electronics (NYSE:MEI - Get Free Report) last released its earnings results on Wednesday, September 2nd. The electronics maker reported ($0.22) EPS for the quarter, beating the consensus estimate of ($0.27) by $0.05. Methode Electronics had a negative net margin of 3.52% and a negative return on equity of 5.63%. The firm had revenue of $265.40 million during the quarter, compared to analysts' expectations of $238.31 million. As a group, sell-side analysts expect that Methode Electronics will post -0.81 EPS for the current year.

Institutional Investors Weigh In On Methode Electronics

Large investors have recently modified their holdings of the stock. Integrated Wealth Concepts LLC acquired a new stake in Methode Electronics in the 2nd quarter valued at $64,000. Allworth Financial LP raised its stake in Methode Electronics by 123.6% during the second quarter. Allworth Financial LP now owns 2,115 shares of the electronics maker's stock worth $40,000 after acquiring an additional 1,169 shares in the last quarter. Susquehanna Fundamental Investments LLC bought a new position in shares of Methode Electronics during the second quarter valued at $549,000. Wellington Management Group LLP bought a new position in shares of Methode Electronics during the second quarter valued at $1,658,000. Finally, Empowered Funds LLC acquired a new stake in shares of Methode Electronics in the 2nd quarter valued at $11,882,000. 95.49% of the stock is currently owned by institutional investors.

Methode Electronics Company Profile

Methode Electronics, Inc NYSE: MEI is a global designer and manufacturer of custom-engineered products and solutions for automotive, industrial, aerospace, commercial and other specialized markets. The company develops technologies that help customers manage electrical power, transmit signals, sense operating conditions and control equipment.

Its product portfolio includes sensors and sensor-based systems, user-interface and control products, LED lighting and display solutions, power distribution and electrical components, connectors, and other electromechanical assemblies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.