NetEase, Inc. (NASDAQ:NTES) to Issue Quarterly Dividend of $0.48

Key Points

• NetEase declared a quarterly dividend of $0.48 per share, payable September 18 to shareholders of record on September 3. The dividend implies an annualized payout of $1.91 and a 1.6% yield.
• The dividend appears well covered, with a current payout ratio of 21.8% and an expected future payout ratio of 19.4% based on projected earnings.
• Analysts maintain a generally positive view of NetEase, with a consensus “Moderate Buy” rating and a $159.25 target price, compared with the stock’s opening price of $121.78.

NetEase, Inc. (NASDAQ:NTES - Get Free Report) declared a quarterly dividend on Friday, August 21st. Stockholders of record on Thursday, September 3rd will be paid a dividend of 0.48 per share by the technology company on Friday, September 18th. This represents a c) annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Thursday, September 3rd.

NetEase has raised its dividend by an average of 0.2%per year over the last three years. NetEase has a payout ratio of 21.8% indicating that its dividend is sufficiently covered by earnings. Analysts expect NetEase to earn $9.85 per share next year, which means the company should continue to be able to cover its $1.91 annual dividend with an expected future payout ratio of 19.4%.

NetEase Stock Down 0.8%

NASDAQ:NTES opened at $121.78 on Tuesday. The firm's fifty day simple moving average is $126.97 and its 200 day simple moving average is $120.52. The stock has a market cap of $77.97 billion, a P/E ratio of 16.77, a price-to-earnings-growth ratio of 1.42 and a beta of 0.72. NetEase has a twelve month low of $106.06 and a twelve month high of $159.55.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on NTES. Nomura raised their price objective on NetEase from $155.00 to $157.00 and gave the company a "buy" rating in a research report on Tuesday, August 25th. Wall Street Zen downgraded NetEase from a "buy" rating to a "hold" rating in a research note on Sunday, August 2nd. Morgan Stanley reiterated an "overweight" rating and set a $158.00 target price on shares of NetEase in a research report on Tuesday, May 26th. Benchmark reissued a "buy" rating on shares of NetEase in a report on Friday, May 22nd. Finally, Zacks Research cut shares of NetEase from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 27th. Eight research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $159.25.

NetEase Company Profile

NetEase, Inc NASDAQ: NTES is a Chinese technology company headquartered in Hangzhou that develops and operates Internet services and products. Founded in 1997 by William Ding (Ding Lei), the company has grown from an early web portal and e-mail provider into a diversified online services group. William Ding has served as the company's founder and long-time leader, guiding its expansion into games, digital content and consumer services.

The company's primary business is interactive entertainment: NetEase Games designs, develops and publishes PC and mobile games for domestic and international audiences, offering a mix of self-developed franchises and titles published under licensing and strategic partnerships.

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