Simpson Manufacturing Company, Inc. (NYSE:SSD) Plans Quarterly Dividend of $0.30

Key Points

• Simpson Manufacturing declared a quarterly dividend of $0.30 per share, payable January 28 to shareholders of record as of January 7. The dividend equals $1.20 annually and yields approximately 0.7%.
• The company has increased its dividend for 11 consecutive years, while its low payout ratio of 13.5% indicates the payment is well covered by earnings; analysts expect a future payout ratio of about 12.2%.
• Simpson Manufacturing recently exceeded quarterly earnings and revenue expectations, reporting $3.09 in EPS and $671.08 million in revenue. Shares traded at $184.41, while analysts held a consensus “Hold” rating with an average price target of $216.25.

Simpson Manufacturing Company, Inc. (NYSE:SSD - Get Free Report) announced a quarterly dividend on Thursday, October 22nd. Stockholders of record on Thursday, January 7th will be paid a dividend of $0.30 per share by the construction company on Thursday, January 28th. This represents a $1.20 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, January 7th.

Simpson Manufacturing has raised its dividend payment by an average of 0.1% annually over the last three years and has increased its dividend every year for the last 11 years. Simpson Manufacturing has a dividend payout ratio of 13.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Simpson Manufacturing to earn $9.86 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 12.2%.

Simpson Manufacturing Stock Down 1.3%

Shares of SSD traded down $2.50 during trading hours on Friday, hitting $184.41. The stock had a trading volume of 489,274 shares, compared to its average volume of 291,466. Simpson Manufacturing has a 1-year low of $156.32 and a 1-year high of $213.49. The firm has a market capitalization of $7.59 billion, a P/E ratio of 20.15 and a beta of 1.32. The firm has a 50 day simple moving average of $178.11 and a 200-day simple moving average of $185.47. The company has a debt-to-equity ratio of 0.15, a current ratio of 3.29 and a quick ratio of 2.14.

Simpson Manufacturing (NYSE:SSD - Get Free Report) last posted its quarterly earnings results on Monday, July 27th. The construction company reported $3.09 earnings per share for the quarter, topping analysts' consensus estimates of $2.72 by $0.37. The business had revenue of $671.08 million for the quarter, compared to the consensus estimate of $658.76 million. Simpson Manufacturing had a return on equity of 18.45% and a net margin of 15.65%. The firm's revenue for the quarter was up 6.3% on a year-over-year basis. During the same period in the prior year, the business earned $2.47 EPS. Sell-side analysts predict that Simpson Manufacturing will post 9.30 EPS for the current fiscal year.

Analyst Ratings Changes

Several research firms have recently commented on SSD. Stifel Nicolaus boosted their price objective on Simpson Manufacturing from $217.00 to $218.00 and gave the company a "buy" rating in a report on Monday, August 3rd. Stephens increased their target price on Simpson Manufacturing from $210.00 to $215.00 and gave the stock a "cautious" rating in a report on Tuesday, July 28th. UBS Group reissued a "neutral" rating on shares of Simpson Manufacturing in a research report on Tuesday, July 28th. Finally, Weiss Ratings reissued a "buy (b-)" rating on shares of Simpson Manufacturing in a research report on Thursday. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $216.25.

Simpson Manufacturing Company Profile

Simpson Manufacturing Co, Inc develops, manufactures and sells structural solutions for residential, commercial and industrial construction. Its products are designed to connect and reinforce wood, concrete and other building materials, supporting applications ranging from new construction to repair, remodeling and retrofit projects.

The company is best known for its Simpson Strong-Tie brand, which offers structural connectors, fasteners, anchors, specialty products, adhesives and related installation systems.

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