Shenandoah Telecommunications Co (NASDAQ:SHEN) Increases Dividend to $0.12 Per Share

Key Points

• Shenandoah Telecommunications raised its annual dividend 9.1% to $0.12 per share, payable December 1 to shareholders of record on November 2.
• The dividend may be financially unsustainable: the company reported negative earnings, with a payout ratio of -16.2%, and analysts expect further losses next year.
• Shares recently traded at $10.13, near the lower end of their 12-month range, while the company’s latest quarterly results beat analyst expectations for both adjusted EPS and revenue.

Shenandoah Telecommunications Co (NASDAQ:SHEN - Get Free Report) declared an annual dividend on Wednesday, October 21st. Investors of record on Monday, November 2nd will be paid a dividend of $0.12 per share by the utilities provider on Tuesday, December 1st. This represents a yield of 123.0%. The ex-dividend date is Monday, November 2nd. This is a 9.1% increase from Shenandoah Telecommunications's previous annual dividend of $0.11.

Shenandoah Telecommunications has decreased its dividend by an average of 0.2% per year over the last three years and has raised its dividend every year for the last 3 years. Shenandoah Telecommunications has a dividend payout ratio of -16.2% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Shenandoah Telecommunications to earn ($0.60) per share next year, which means the company may not be able to cover its $0.11 annual dividend with an expected future payout ratio of -18.3%.

Shenandoah Telecommunications Stock Performance

Shares of SHEN stock traded up $0.37 during trading hours on Thursday, hitting $10.13. The company's stock had a trading volume of 75,586 shares, compared to its average volume of 467,722. The stock has a market cap of $560.85 million, a PE ratio of -13.01 and a beta of 0.76. Shenandoah Telecommunications has a 12-month low of $9.53 and a 12-month high of $17.34. The company has a 50 day moving average of $11.71 and a 200 day moving average of $13.62. The company has a current ratio of 0.85, a quick ratio of 0.85 and a debt-to-equity ratio of 0.83.

Shenandoah Telecommunications (NASDAQ:SHEN - Get Free Report) last issued its earnings results on Wednesday, July 29th. The utilities provider reported ($0.17) EPS for the quarter, topping analysts' consensus estimates of ($0.28) by $0.11. The firm had revenue of $93.46 million for the quarter, compared to the consensus estimate of $92.83 million. Shenandoah Telecommunications had a negative return on equity of 4.54% and a negative net margin of 10.83%. On average, sell-side analysts forecast that Shenandoah Telecommunications will post -0.85 EPS for the current fiscal year.

Shenandoah Telecommunications Company Profile

Shenandoah Telecommunications Company, also known as Shentel, is a telecommunications provider headquartered in Edinburg, Virginia. The company delivers broadband communications services to residential and commercial customers, with a focus on high-speed internet, fiber-optic connectivity, video and voice services.

Shentel operates its Glo Fiber network in selected communities and provides broadband services through its legacy cable and fiber networks. Its service territory primarily includes markets in Virginia, West Virginia, Maryland and Pennsylvania.

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