Ferguson plc (NYSE:FERG) to Issue Quarterly Dividend of $0.89

Key Points

• Ferguson declared a quarterly dividend of $0.89 per share, payable October 7 to shareholders of record on August 21. The dividend implies an annualized payout of $3.56 and a 1.4% yield, with a current payout ratio of 33.4%.
• Ferguson’s latest quarterly results exceeded expectations, with EPS of $2.28 versus the $2.14 consensus and revenue of $7.47 billion, up 3.6% year over year.
• Analysts maintain a favorable view of the stock, with a consensus rating of “Moderate Buy” and an average price target of $277.21, compared with shares trading near $253.69.

Ferguson plc (NYSE:FERG - Get Free Report) announced a quarterly dividend on Wednesday, August 5th. Shareholders of record on Friday, August 21st will be given a dividend of 0.89 per share on Wednesday, October 7th. This represents a c) annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, August 21st.

Ferguson has increased its dividend payment by an average of 0.0%annually over the last three years. Ferguson has a payout ratio of 33.4% meaning its dividend is sufficiently covered by earnings. Research analysts expect Ferguson to earn $12.63 per share next year, which means the company should continue to be able to cover its $3.56 annual dividend with an expected future payout ratio of 28.2%.

Ferguson Stock Performance

Shares of FERG traded down $1.56 during midday trading on Thursday, reaching $253.69. The stock had a trading volume of 1,155,288 shares, compared to its average volume of 1,746,890. The firm has a market cap of $49.20 billion, a PE ratio of 29.52, a P/E/G ratio of 1.81 and a beta of 1.14. The firm has a 50 day simple moving average of $232.22 and a 200-day simple moving average of $240.66. Ferguson has a one year low of $207.64 and a one year high of $271.64. The company has a current ratio of 1.78, a quick ratio of 0.96 and a debt-to-equity ratio of 0.68.

Ferguson (NYSE:FERG - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $2.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.14 by $0.14. The business had revenue of $7.47 billion during the quarter. Ferguson had a net margin of 6.98% and a return on equity of 38.81%. The company's revenue for the quarter was up 3.6% on a year-over-year basis. During the same quarter last year, the business posted $2.50 earnings per share. As a group, sell-side analysts anticipate that Ferguson will post 11.25 EPS for the current year.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on FERG shares. Weiss Ratings upgraded Ferguson from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, July 2nd. Wells Fargo & Company upped their price objective on shares of Ferguson from $260.00 to $285.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Royal Bank Of Canada increased their price objective on shares of Ferguson from $271.00 to $281.00 and gave the company an "outperform" rating in a research report on Wednesday, May 6th. Barclays lifted their target price on shares of Ferguson from $295.00 to $297.00 and gave the stock an "overweight" rating in a report on Friday, May 8th. Finally, Citigroup reiterated a "neutral" rating on shares of Ferguson in a research note on Wednesday, May 6th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, Ferguson has a consensus rating of "Moderate Buy" and an average price target of $277.21.

About Ferguson

Ferguson NYSE: FERG is a multinational distributor specializing in plumbing and heating products and related building supplies, serving professional contractors, builders and industrial customers. The company supplies a broad range of products used in residential, commercial and infrastructure projects, including pipes and fittings, valves and controls, HVAC equipment, waterworks materials, plumbing fixtures, pumps and accessories, as well as complementary electrical and specialty product lines.

Ferguson operates a network of branches and distribution centers that provide inventory, logistics and value-added services to trade customers.

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