Lifevantage Corporation (NASDAQ:LFVN) Raises Dividend to $0.05 Per Share

Key Points

• Quarterly dividend raised to $0.05 per share, payable June 15 to shareholders of record on June 1, implying about a 4.0% yield.
• LifeVantage missed quarterly estimates (EPS $0.12 vs. $0.16 expected; revenue $43.72M vs. $47.77M) and the stock fell roughly 16.6% to $5.01 on the news.
• The dividend appears sustainable with a reported payout ratio of 16.7% and analysts projecting earnings that would support the $0.18 annual dividend (expected payout ratio ~25.7%).

Lifevantage Corporation (NASDAQ:LFVN - Get Free Report) announced a quarterly dividend on Wednesday, May 6th. Stockholders of record on Monday, June 1st will be paid a dividend of 0.05 per share on Monday, June 15th. This represents a c) annualized dividend and a dividend yield of 4.0%. The ex-dividend date is Monday, June 1st. This is a 11.1% increase from Lifevantage's previous quarterly dividend of $0.05.

Lifevantage has a payout ratio of 16.7% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Lifevantage to earn $0.70 per share next year, which means the company should continue to be able to cover its $0.18 annual dividend with an expected future payout ratio of 25.7%.

Lifevantage Trading Down 16.6%

Shares of LFVN traded down $1.00 during mid-day trading on Thursday, hitting $5.01. The company's stock had a trading volume of 365,799 shares, compared to its average volume of 201,328. The company's 50-day moving average is $4.70 and its 200-day moving average is $5.81. Lifevantage has a 52-week low of $3.90 and a 52-week high of $15.00. The firm has a market capitalization of $64.11 million, a price-to-earnings ratio of 8.35 and a beta of 0.52.

Lifevantage (NASDAQ:LFVN - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The company reported $0.12 earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.04). Lifevantage had a return on equity of 29.59% and a net margin of 3.74%.The business had revenue of $43.72 million during the quarter, compared to analysts' expectations of $47.77 million. As a group, sell-side analysts predict that Lifevantage will post 0.65 earnings per share for the current fiscal year.

About Lifevantage

LifeVantage Corporation is a publicly traded company that develops, markets and distributes nutritional supplements, skincare products and weight-management solutions through a direct-selling business model. The company's flagship offering, Protandim®, is formulated to activate the Nrf2 pathway, which is associated with cellular defense processes. LifeVantage also markets the PhysIQ® line for metabolism and body composition support and the TrueScience® skincare regimen, targeting a range of health and wellness needs.

Founded in 1999 and headquartered in Sandy, Utah, LifeVantage combines research in nutrigenomics with a network of independent distributors to bring its products to market.

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