Rollins, Inc. (NYSE:ROL) Plans Dividend Increase - $0.20 Per Share

Key Points

• Rollins plans to raise its quarterly dividend to $0.20 per share, a 9.6% increase from $0.1825. The payment implies an annualized dividend of $0.80 and a 2.4% yield, with payment scheduled for December 10 to shareholders of record on November 10.
• The dividend appears supported by earnings, with a current payout ratio of 58.9% and an expected future payout ratio of 57.0%. Rollins has increased its dividend for four consecutive years.
• Rollins’ latest quarterly results missed analyst expectations, reporting $0.32 in EPS versus $0.34 expected and $1.08 billion in revenue versus $1.09 billion estimated, although revenue grew 7.9% year over year.

Rollins, Inc. (NYSE:ROL - Get Free Report) announced a quarterly dividend on Tuesday, October 20th. Shareholders of record on Tuesday, November 10th will be paid a dividend of $0.20 per share by the business services provider on Thursday, December 10th. This represents a $0.80 annualized dividend and a yield of 2.4%. The ex-dividend date is Tuesday, November 10th. This is a 9.6% increase from Rollins's previous quarterly dividend of $0.1825.

Rollins has increased its dividend payment by an average of 0.2% annually over the last three years and has increased its dividend every year for the last 4 years. Rollins has a payout ratio of 58.9% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Rollins to earn $1.28 per share next year, which means the company should continue to be able to cover its $0.73 annual dividend with an expected future payout ratio of 57.0%.

Rollins Stock Performance

Shares of NYSE ROL traded up $0.20 during midday trading on Wednesday, reaching $33.53. 1,553,556 shares of the company traded hands, compared to its average volume of 4,516,296. The company has a market cap of $16.14 billion, a price-to-earnings ratio of 30.50, a PEG ratio of 3.63 and a beta of 0.73. The stock has a 50-day moving average price of $33.82 and a 200 day moving average price of $42.88. Rollins has a 52 week low of $29.28 and a 52 week high of $66.14. The company has a debt-to-equity ratio of 0.34, a current ratio of 0.63 and a quick ratio of 0.58.

Rollins (NYSE:ROL - Get Free Report) last released its earnings results on Wednesday, July 22nd. The business services provider reported $0.32 EPS for the quarter, missing the consensus estimate of $0.34 by ($0.02). The business had revenue of $1.08 billion for the quarter, compared to analyst estimates of $1.09 billion. Rollins had a net margin of 13.55% and a return on equity of 38.81%. The firm's revenue for the quarter was up 7.9% on a year-over-year basis. During the same period in the prior year, the company earned $0.30 earnings per share. Sell-side analysts anticipate that Rollins will post 1.16 earnings per share for the current fiscal year.

About Rollins

Rollins, Inc is a provider of pest and termite control services for residential and commercial customers. The company offers protection against common pests such as ants, cockroaches, rodents, termites, mosquitoes and bedbugs, along with wildlife control and other specialty services.

Rollins serves customers through a portfolio of regional and international brands, including Orkin, the company's best-known pest control business; HomeTeam Pest Defense; Western Pest Services; Critter Control; and other local and specialized operations.

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