Equinix, Inc. Plans Quarterly Dividend of $5.16 (NASDAQ:EQIX)

Key Points

• Equinix declared a quarterly dividend of $5.16 per share, payable September 16 to shareholders of record on August 19. The dividend provides an annualized yield of approximately 2.0%, and Equinix has raised its dividend for 10 consecutive years.
• The company’s current payout ratio is elevated at 130.5%, meaning earnings do not presently cover the dividend. However, analysts expect a significantly lower future payout ratio of 48.9% based on projected earnings.
• Equinix reported quarterly EPS of $10.79, exceeding the $4.30 consensus estimate, while revenue rose 9.8% year over year to $2.44 billion, slightly below expectations.

Equinix, Inc. (NASDAQ:EQIX - Get Free Report) announced a quarterly dividend on Wednesday, July 29th. Shareholders of record on Wednesday, August 19th will be given a dividend of 5.16 per share by the financial services provider on Wednesday, September 16th. This represents a c) dividend on an annualized basis and a yield of 2.0%. The ex-dividend date of this dividend is Wednesday, August 19th.

Equinix has raised its dividend by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 10 consecutive years. Equinix has a payout ratio of 130.5% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Equinix to earn $42.17 per share next year, which means the company should continue to be able to cover its $20.64 annual dividend with an expected future payout ratio of 48.9%.

Equinix Stock Performance

Shares of EQIX opened at $1,008.02 on Thursday. Equinix has a 1 year low of $720.62 and a 1 year high of $1,128.68. The company has a debt-to-equity ratio of 1.39, a current ratio of 1.18 and a quick ratio of 1.18. The stock's fifty day moving average price is $1,055.12 and its two-hundred day moving average price is $993.08. The firm has a market cap of $99.41 billion, a PE ratio of 69.76, a PEG ratio of 1.92 and a beta of 0.98.

Equinix (NASDAQ:EQIX - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The financial services provider reported $10.79 earnings per share for the quarter, topping the consensus estimate of $4.30 by $6.49. Equinix had a return on equity of 10.03% and a net margin of 15.07%.The company had revenue of $2.44 billion during the quarter, compared to the consensus estimate of $2.52 billion. During the same quarter in the prior year, the company earned $9.67 EPS. The firm's quarterly revenue was up 9.8% compared to the same quarter last year. On average, equities research analysts forecast that Equinix will post 38.25 EPS for the current year.

About Equinix

Equinix, Inc is a global provider of digital infrastructure and interconnection services, specializing in carrier-neutral data centers and colocation. The company operates a platform that enables enterprises, cloud and network service providers, and content companies to colocate IT infrastructure, interconnect directly with partners and providers, and access cloud on-ramps and network services in a secure, low-latency environment.

Equinix's offerings include traditional colocation space and power, cross-connects and meet-me rooms, and a suite of connectivity and on-demand services designed for hybrid multicloud architectures.

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