Nelnet, Inc. (NYSE:NNI) Declares Quarterly Dividend of $0.36

Key Points

• Nelnet raised its quarterly dividend 9.1%, from $0.33 to $0.36 per share, equivalent to $1.44 annually and a 1.1% yield.
• Shareholders of record on December 1 will receive the dividend on December 15; the ex-dividend date is December 1.
• Nelnet reported quarterly EPS of $1.89, beating the $1.83 analyst consensus, and its 15.5% dividend payout ratio indicates earnings comfortably cover the payment.

Nelnet, Inc. (NYSE:NNI - Get Free Report) declared a quarterly dividend on Wednesday, November 4th. Shareholders of record on Tuesday, December 1st will be given a dividend of $0.36 per share by the credit services provider on Tuesday, December 15th. This represents a $1.44 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Tuesday, December 1st. This is a 9.1% increase from Nelnet's previous quarterly dividend of $0.33.

Nelnet has raised its dividend payment by an average of 0.1% per year over the last three years. Nelnet has a payout ratio of 15.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Nelnet to earn $8.50 per share next year, which means the company should continue to be able to cover its $1.32 annual dividend with an expected future payout ratio of 15.5%.

Nelnet Price Performance

Shares of NNI opened at $126.51 on Friday. The company has a current ratio of 15.89, a quick ratio of 15.89 and a debt-to-equity ratio of 1.94. The stock's 50 day moving average is $125.38 and its two-hundred day moving average is $129.96. Nelnet has a twelve month low of $116.62 and a twelve month high of $144.38. The firm has a market capitalization of $4.53 billion, a PE ratio of 15.52 and a beta of 0.78.

Nelnet (NYSE:NNI - Get Free Report) last issued its earnings results on Thursday, November 5th. The credit services provider reported $1.89 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.83 by $0.06. Nelnet had a return on equity of 8.26% and a net margin of 14.35%. The business had revenue of $436.59 million during the quarter, compared to the consensus estimate of $427.37 million. Research analysts anticipate that Nelnet will post 7.42 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Corient Private Wealth LP purchased a new stake in shares of Nelnet in the second quarter valued at $687,000. Edgestream Partners L.P. grew its position in shares of Nelnet by 47.9% in the first quarter. Edgestream Partners L.P. now owns 50,718 shares of the credit services provider's stock valued at $6,541,000 after purchasing an additional 16,428 shares during the last quarter. Militia Capital Management LLC acquired a new position in shares of Nelnet during the 1st quarter worth about $1,161,000. Renaissance Technologies LLC boosted its stake in Nelnet by 58.9% during the 1st quarter. Renaissance Technologies LLC now owns 48,000 shares of the credit services provider's stock valued at $6,190,000 after purchasing an additional 17,800 shares during the period. Finally, First Trust Advisors LP grew its holdings in Nelnet by 41.4% in the 1st quarter. First Trust Advisors LP now owns 24,300 shares of the credit services provider's stock valued at $3,134,000 after buying an additional 7,118 shares during the last quarter. Institutional investors and hedge funds own 33.51% of the company's stock.

About Nelnet

Nelnet, Inc is a diversified education, technology and communications company headquartered in Lincoln, Nebraska. Its businesses provide services to colleges, universities, schools, students, borrowers and businesses, with a focus on simplifying education-related payments, administration and technology.

The company's activities include student loan servicing and asset management, tuition payment processing, education technology, school administration solutions and communications services.

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