Northern Trust Corporation (NASDAQ:NTRS) Shareholders Set to Receive $0.88 Quarterly Dividend

Key Points

• Northern Trust declared a quarterly dividend of $0.88 per share, payable January 1 to shareholders of record on December 4. The annualized dividend is $3.52, yielding approximately 2.1%.
• The dividend appears well covered, with a current payout ratio of 41.3%; analysts expect next year’s earnings to support an estimated payout ratio of 27.5%.
• Northern Trust reported quarterly EPS of $3.40, exceeding estimates by $0.53, while revenue rose 13.4% year over year to $2.29 billion. Analysts maintain a consensus “Hold” rating with an average price target of $183.93.

Northern Trust Corporation (NASDAQ:NTRS - Get Free Report) announced a quarterly dividend on Tuesday, October 20th. Investors of record on Friday, December 4th will be given a dividend of $0.88 per share by the asset manager on Friday, January 1st. This represents a $3.52 annualized dividend and a yield of 2.1%. The ex-dividend date is Friday, December 4th.

Northern Trust has a dividend payout ratio of 41.3% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Northern Trust to earn $12.80 per share next year, which means the company should continue to be able to cover its $3.52 annual dividend with an expected future payout ratio of 27.5%.

Northern Trust Trading Up 0.6%

Northern Trust stock traded up $1.02 during mid-day trading on Wednesday, reaching $166.46. 750,228 shares of the company traded hands, compared to its average volume of 1,092,355. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.65 and a quick ratio of 0.65. Northern Trust has a 52-week low of $121.53 and a 52-week high of $195.78. The firm has a market capitalization of $30.45 billion, a price-to-earnings ratio of 14.28, a P/E/G ratio of 0.93 and a beta of 1.24. The firm's 50 day moving average price is $178.63 and its 200 day moving average price is $173.50.

Northern Trust (NASDAQ:NTRS - Get Free Report) last posted its earnings results on Wednesday, October 21st. The asset manager reported $3.40 EPS for the quarter, topping the consensus estimate of $2.87 by $0.53. Northern Trust had a net margin of 14.76% and a return on equity of 16.91%. The firm had revenue of $2.29 billion during the quarter, compared to analysts' expectations of $2.26 billion. During the same period last year, the company posted $2.29 EPS. The company's quarterly revenue was up 13.4% compared to the same quarter last year. On average, analysts anticipate that Northern Trust will post 11.65 earnings per share for the current fiscal year.

Analysts Set New Price Targets

NTRS has been the subject of a number of research reports. Capital One Financial set a $190.00 price target on shares of Northern Trust in a research note on Tuesday, October 6th. Zacks Research lowered shares of Northern Trust from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 25th. BMO Capital Markets cut their price objective on Northern Trust from $208.00 to $190.00 and set an "outperform" rating on the stock in a research report on Tuesday, October 6th. Weiss Ratings raised Northern Trust from a "buy (b)" rating to a "buy (b+)" rating in a research report on Thursday, October 8th. Finally, TD Cowen assumed coverage on Northern Trust in a report on Thursday, October 8th. They set a "hold" rating and a $175.00 target price on the stock. Three research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $183.93.

Northern Trust Company Profile

Northern Trust Corporation NASDAQ: NTRS is a financial services company that provides wealth management, asset servicing, asset management and banking services. The company serves institutional investors, corporations, financial institutions, high-net-worth individuals and families.

Its offerings include custody and administration of investment assets, fund accounting, securities lending, foreign exchange, treasury services, investment management, trust and estate services, private banking and wealth planning.

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