Stantec Inc. (NYSE:STN) Announces Quarterly Dividend of C$0.24

Key Points

• Stantec declared a quarterly dividend of C$0.24 per share, payable January 15 to shareholders of record December 31; the stated annualized yield is 1.1%.
• The company has raised its dividend for 13 consecutive years, and its reported payout ratio of 16.1% suggests earnings currently cover the payment comfortably.
• Stantec reported quarterly EPS of $1.35, beating the $1.26 consensus estimate, and revenue of $1.31 billion, slightly above expectations. Analysts have a “Moderate Buy” consensus rating.

Stantec Inc. (NYSE:STN - Get Free Report) TSE: STN announced a quarterly dividend on Thursday, November 12th. Investors of record on Thursday, December 31st will be given a dividend of C$0.24 per share by the business services provider on Friday, January 15th. This represents a $0.98 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Thursday, December 31st.

Stantec has increased its dividend payment by an average of 0.1% per year over the last three years and has raised its dividend every year for the last 13 years. Stantec has a payout ratio of 16.1% meaning its dividend is sufficiently covered by earnings. Research analysts expect Stantec to earn $4.83 per share next year, which means the company should continue to be able to cover its $0.70 annual dividend with an expected future payout ratio of 14.5%.

Stantec Stock Up 15.6%

Stantec stock traded up $11.75 during midday trading on Friday, hitting $86.88. 424,956 shares of the company's stock were exchanged, compared to its average volume of 379,422. The company has a debt-to-equity ratio of 0.54, a quick ratio of 1.50 and a current ratio of 1.50. Stantec has a 12 month low of $65.35 and a 12 month high of $108.40. The firm has a 50-day moving average of $70.82 and a two-hundred day moving average of $78.65. The company has a market cap of $9.56 billion, a PE ratio of 27.13 and a beta of 0.94.

Stantec (NYSE:STN - Get Free Report) TSE: STN last posted its quarterly earnings results on Thursday, November 12th. The business services provider reported $1.35 EPS for the quarter, beating the consensus estimate of $1.26 by $0.09. Stantec had a net margin of 5.91% and a return on equity of 19.70%. The business had revenue of $1.31 billion during the quarter, compared to analyst estimates of $1.30 billion. Stantec has set its FY 2026 guidance at 4.430-4.510 EPS. As a group, analysts expect that Stantec will post 4.42 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities analysts recently commented on the stock. Wall Street Zen downgraded shares of Stantec from a "buy" rating to a "hold" rating in a research note on Saturday, October 17th. Scotiabank restated an "outperform" rating on shares of Stantec in a report on Friday, August 14th. Canadian Imperial Bank of Commerce reaffirmed an "outperform" rating on shares of Stantec in a research report on Friday, August 14th. Finally, Weiss Ratings upgraded Stantec from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, October 8th. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $175.00.

Stantec Company Profile

Stantec is a global professional services firm that provides engineering, architecture, environmental consulting, and related services. Its work supports the planning, design, and delivery of projects in areas including water, transportation, buildings, energy, and community development. Founded in Edmonton, Alberta, in 1954 as D.R. Stanley Associates, the company later adopted the Stantec name. It is headquartered in Edmonton and serves public- and private-sector clients across North America and in international markets.

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