Otis Worldwide Corporation (NYSE:OTIS) Shareholders to Get $0.44 Quarterly Dividend

Key Points

• Otis Worldwide declared a quarterly dividend of $0.44 per share, payable December 11 to shareholders of record on November 13. The dividend implies $1.76 in annualized payments and a 2.4% yield.
• The dividend appears well covered, with a 39.2% payout ratio, five consecutive years of increases, and analysts expecting a similar 39.4% payout ratio next year.
• Otis exceeded quarterly earnings and revenue expectations, reporting $1.05 in EPS and $3.91 billion in revenue, while quarterly revenue increased 6.1% year over year.

Otis Worldwide Corporation (NYSE:OTIS - Get Free Report) announced a quarterly dividend on Thursday, October 29th. Investors of record on Friday, November 13th will be paid a dividend of $0.44 per share on Friday, December 11th. This represents a $1.76 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Friday, November 13th.

Otis Worldwide has raised its dividend payment by an average of 0.2% per year over the last three years and has increased its dividend every year for the last 5 years. Otis Worldwide has a dividend payout ratio of 39.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Otis Worldwide to earn $4.47 per share next year, which means the company should continue to be able to cover its $1.76 annual dividend with an expected future payout ratio of 39.4%.

Otis Worldwide Stock Performance

NYSE OTIS opened at $74.69 on Friday. Otis Worldwide has a 52-week low of $63.58 and a 52-week high of $94.57. The company has a fifty day moving average of $69.60 and a 200-day moving average of $76.50. The company has a market capitalization of $28.43 billion, a P/E ratio of 18.58, a P/E/G ratio of 2.56 and a beta of 0.87.

Otis Worldwide (NYSE:OTIS - Get Free Report) last released its earnings results on Wednesday, October 28th. The company reported $1.05 earnings per share for the quarter, topping analysts' consensus estimates of $1.01 by $0.04. The company had revenue of $3.91 billion during the quarter, compared to the consensus estimate of $3.85 billion. Otis Worldwide had a negative return on equity of 28.45% and a net margin of 10.28%. Otis Worldwide's quarterly revenue was up 6.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.05 EPS. As a group, analysts forecast that Otis Worldwide will post 4.03 EPS for the current fiscal year.

Hedge Funds Weigh In On Otis Worldwide

Institutional investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new stake in shares of Otis Worldwide in the second quarter valued at about $2,264,017,000. State Street Corp lifted its holdings in shares of Otis Worldwide by 2.9% in the 2nd quarter. State Street Corp now owns 16,664,994 shares of the company's stock valued at $1,193,214,000 after purchasing an additional 463,491 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Otis Worldwide during the 2nd quarter worth $423,739,000. Van ECK Associates Corp increased its holdings in shares of Otis Worldwide by 0.6% in the second quarter. Van ECK Associates Corp now owns 3,993,011 shares of the company's stock valued at $285,900,000 after purchasing an additional 24,914 shares during the period. Finally, Canada Pension Plan Investment Board acquired a new position in Otis Worldwide during the 2nd quarter worth approximately $223,003,000. Institutional investors own 88.03% of the company's stock.

About Otis Worldwide

Otis Worldwide Corporation NYSE: OTIS is a global manufacturer and service provider for the elevator and escalator industry. The company designs, manufactures, installs, modernizes and maintains elevators, escalators and moving walkways for commercial buildings, residential developments, transportation hubs and other infrastructure projects.

Otis provides equipment for new construction as well as maintenance, repair and modernization services for existing systems. Its service operations support equipment from Otis and other manufacturers, helping building owners and operators manage the safety, performance and lifecycle of vertical transportation systems.

The company traces its history to 1853, when Elisha Otis demonstrated a safety device for elevators.

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