Encompass Health Corporation (NYSE:EHC) Declares Dividend Increase - $0.21 Per Share

Key Points

• Encompass Health declared a quarterly dividend of $0.21 per share, payable on October 15 to shareholders of record as of October 1. That’s a 10.5% increase from the previous $0.19 dividend.
• The stock’s annualized dividend yield is about 0.8%, and the company’s payout ratio remains low at 13.6%, suggesting the dividend is well covered by earnings.
• Encompass Health also reported solid recent operating results, with Q1 earnings of $1.60 per share beating estimates and revenue rising 9% year over year. Analysts currently have a Moderate Buy consensus and an average price target of $143.86.

Encompass Health Corporation (NYSE:EHC - Get Free Report) declared a quarterly dividend on Thursday, July 23rd. Stockholders of record on Thursday, October 1st will be given a dividend of 0.21 per share on Thursday, October 15th. This represents a c) dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Thursday, October 1st. This is a 10.5% increase from Encompass Health's previous quarterly dividend of $0.19.

Encompass Health has decreased its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 2 consecutive years. Encompass Health has a dividend payout ratio of 13.6% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Encompass Health to earn $6.45 per share next year, which means the company should continue to be able to cover its $0.76 annual dividend with an expected future payout ratio of 11.8%.

Encompass Health Stock Up 0.1%

Shares of NYSE EHC traded up $0.07 during mid-day trading on Thursday, hitting $111.09. The company had a trading volume of 423,426 shares, compared to its average volume of 1,092,466. The company has a current ratio of 1.17, a quick ratio of 1.17 and a debt-to-equity ratio of 0.76. The firm has a 50-day simple moving average of $104.77 and a two-hundred day simple moving average of $103.70. The company has a market capitalization of $11.02 billion, a PE ratio of 18.55, a price-to-earnings-growth ratio of 2.44 and a beta of 0.74. Encompass Health has a one year low of $92.77 and a one year high of $127.99.

Encompass Health (NYSE:EHC - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The company reported $1.60 EPS for the quarter, beating the consensus estimate of $1.51 by $0.09. The firm had revenue of $1.59 billion during the quarter, compared to analysts' expectations of $1.57 billion. Encompass Health had a return on equity of 18.28% and a net margin of 10.04%.The business's quarterly revenue was up 9.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.37 earnings per share. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. On average, equities analysts expect that Encompass Health will post 5.96 EPS for the current year.

Wall Street Analyst Weigh In

EHC has been the subject of several recent analyst reports. Weiss Ratings downgraded Encompass Health from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, June 26th. Wall Street Zen upgraded shares of Encompass Health from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Leerink Partners set a $152.00 price target on shares of Encompass Health in a research report on Friday, May 22nd. TD Cowen began coverage on shares of Encompass Health in a research report on Thursday, May 28th. They issued a "buy" rating and a $125.00 price objective for the company. Finally, Barclays lowered their price objective on shares of Encompass Health from $153.00 to $140.00 and set an "overweight" rating on the stock in a research note on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $143.86.

Encompass Health Company Profile

Encompass Health Corporation is a leading provider of post‐acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end‐of‐life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.

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