The Estee Lauder Companies Inc. (NYSE:EL) Stock to Pay Quarterly Dividend of $0.35

Key Points

• Estée Lauder declared a quarterly dividend of $0.35 per share, payable December 15 to shareholders of record November 30. The dividend is equivalent to $1.40 annually and yields approximately 1.3%.
• The dividend appears covered by earnings, with a current payout ratio of 63.6% and an expected future payout ratio of 35.4%, though payments have declined slightly on average over the past three years.
• The company beat quarterly earnings and revenue expectations, reporting EPS of $0.72 and revenue of $3.72 billion, while analysts give the stock a “Moderate Buy” consensus rating with an average price target of $106.92.

The Estee Lauder Companies Inc. (NYSE:EL - Get Free Report) declared a quarterly dividend on Monday, November 2nd. Stockholders of record on Monday, November 30th will be paid a dividend of $0.35 per share on Tuesday, December 15th. This represents a $1.40 annualized dividend and a dividend yield of 1.3%. The ex-dividend date is Monday, November 30th.

Estee Lauder Companies has decreased its dividend payment by an average of 0.1% annually over the last three years. Estee Lauder Companies has a dividend payout ratio of 63.6% meaning its dividend is sufficiently covered by earnings. Analysts expect Estee Lauder Companies to earn $3.95 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 35.4%.

Estee Lauder Companies Price Performance

Shares of NYSE:EL traded down $4.68 during trading on Monday, hitting $104.55. 8,466,331 shares of the company were exchanged, compared to its average volume of 3,807,410. Estee Lauder Companies has a 1-year low of $66.22 and a 1-year high of $121.64. The company has a market capitalization of $37.83 billion, a P/E ratio of 213.37, a price-to-earnings-growth ratio of 1.59 and a beta of 1.27. The company has a quick ratio of 0.90, a current ratio of 1.22 and a debt-to-equity ratio of 1.79. The business's 50 day moving average is $100.36 and its 200-day moving average is $91.92.

Estee Lauder Companies (NYSE:EL - Get Free Report) last released its quarterly earnings data on Monday, November 2nd. The company reported $0.72 earnings per share for the quarter, beating the consensus estimate of $0.51 by $0.21. Estee Lauder Companies had a return on equity of 23.52% and a net margin of 1.21%. The company had revenue of $3.72 billion for the quarter, compared to the consensus estimate of $3.65 billion. During the same quarter last year, the business posted $0.32 EPS. Estee Lauder Companies's revenue for the quarter was up 6.7% on a year-over-year basis. Equities analysts forecast that Estee Lauder Companies will post 3.32 earnings per share for the current year.

Analyst Upgrades and Downgrades

EL has been the subject of several recent research reports. Wall Street Zen downgraded Estee Lauder Companies from a "buy" rating to a "hold" rating in a research note on Saturday, September 26th. Morgan Stanley lifted their target price on shares of Estee Lauder Companies from $102.00 to $112.00 and gave the stock an "equal weight" rating in a research report on Thursday, October 15th. Weiss Ratings raised shares of Estee Lauder Companies from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, October 27th. Wells Fargo & Company decreased their price target on shares of Estee Lauder Companies from $104.00 to $95.00 and set an "equal weight" rating for the company in a research report on Monday, October 5th. Finally, Argus upped their price target on shares of Estee Lauder Companies from $100.00 to $125.00 and gave the company a "buy" rating in a research report on Friday, August 28th. Two research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $106.92.

About Estee Lauder Companies

The Estée Lauder Companies Inc NYSE: EL is a global prestige beauty company that develops, markets and sells skincare, makeup, fragrance and hair-care products. Its portfolio includes brands such as Estée Lauder, Clinique, M·A·C, La Mer, Jo Malone London, Aveda, Bobbi Brown Cosmetics, Tom Ford Beauty, Le Labo and The Ordinary.

Founded in 1946 by Estée and Joseph Lauder, the company began with four skincare products and has expanded into a multinational beauty business. Its products are sold through department and specialty stores, beauty retailers, brand-operated stores, e-commerce platforms, salons, spas and other distribution channels.

The Estée Lauder Companies serves consumers in markets across the Americas, Europe, the Middle East and Africa, and Asia-Pacific.

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