Royalty Pharma PLC (NASDAQ:RPRX) to Issue Quarterly Dividend of $0.23

Key Points

• Royalty Pharma declared a quarterly dividend of $0.235 per share, payable December 10 to shareholders of record on November 13. The dividend equates to $0.94 annually and a 1.5% yield.
• The dividend appears well covered, with an 18.7% current payout ratio and an expected 16.7% payout ratio based on next year’s projected earnings. The company has raised its dividend for five consecutive years.
• Shares recently traded at $60.96, near the upper end of their $35.92–$64.38 one-year range. In its latest quarter, Royalty Pharma reported adjusted earnings of $1.32 per share, exceeding analyst expectations, though revenue fell short of estimates.

Royalty Pharma PLC (NASDAQ:RPRX - Get Free Report) announced a quarterly dividend on Friday, October 16th. Shareholders of record on Friday, November 13th will be paid a dividend of $0.2350 per share by the biopharmaceutical company on Thursday, December 10th. This represents a $0.94 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Friday, November 13th.

Royalty Pharma has raised its dividend by an average of 0.2% per year over the last three years and has increased its dividend annually for the last 5 consecutive years. Royalty Pharma has a dividend payout ratio of 18.7% meaning its dividend is sufficiently covered by earnings. Research analysts expect Royalty Pharma to earn $5.63 per share next year, which means the company should continue to be able to cover its $0.94 annual dividend with an expected future payout ratio of 16.7%.

Royalty Pharma Price Performance

Shares of NASDAQ RPRX traded up $1.34 during midday trading on Friday, reaching $60.96. The company's stock had a trading volume of 5,786,437 shares, compared to its average volume of 3,434,211. Royalty Pharma has a one year low of $35.92 and a one year high of $64.38. The company has a market cap of $35.05 billion, a price-to-earnings ratio of 42.04, a price-to-earnings-growth ratio of 1.62 and a beta of 0.42. The company has a 50 day moving average price of $59.34 and a 200 day moving average price of $55.68. The company has a current ratio of 2.80, a quick ratio of 2.80 and a debt-to-equity ratio of 0.88.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last issued its earnings results on Wednesday, August 5th. The biopharmaceutical company reported $1.32 earnings per share for the quarter, topping analysts' consensus estimates of $1.27 by $0.05. Royalty Pharma had a net margin of 32.14% and a return on equity of 30.01%. The firm had revenue of $674.14 million during the quarter, compared to analysts' expectations of $758.93 million. On average, equities research analysts expect that Royalty Pharma will post 5.29 EPS for the current year.

About Royalty Pharma

Royalty Pharma plc is a biopharmaceutical royalty acquisition company that provides funding to life sciences companies in exchange for rights to future payments associated with approved or development-stage medicines. Its business model gives biotechnology and pharmaceutical companies access to capital while allowing Royalty Pharma to participate in the commercial success of therapies without directly developing or marketing them.

The company invests in royalties and other economic interests tied to a broad range of biopharmaceutical products, including treatments for cancer, rare diseases, immune disorders, diabetes and other chronic conditions.

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