Nelnet, Inc. (NYSE:NNI) Declares Quarterly Dividend of $0.33

Key Points

• $0.33 quarterly dividend announced — shareholders of record June 1 and payable June 15, implying $1.32 annualized and a ~0.9% yield.
• Dividend appears well covered: Nelnet's payout ratio is ~15.5% and analysts expect $10 EPS next year (implying a ~13.2% future payout ratio), though dividend growth has averaged only ~0.1% per year over the last three years.
• Recent quarter missed estimates: Nelnet reported $1.94 EPS vs. $2.66 expected and $419.1M revenue vs. $443.8M, while the stock trades around $141 with a ~12x P/E and $5.08B market cap.

Nelnet, Inc. (NYSE:NNI - Get Free Report) announced a quarterly dividend on Thursday, May 7th. Shareholders of record on Monday, June 1st will be given a dividend of 0.33 per share by the credit services provider on Monday, June 15th. This represents a c) dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Monday, June 1st.

Nelnet has increased its dividend by an average of 0.1%per year over the last three years. Nelnet has a payout ratio of 15.5% indicating that its dividend is sufficiently covered by earnings. Analysts expect Nelnet to earn $10.00 per share next year, which means the company should continue to be able to cover its $1.32 annual dividend with an expected future payout ratio of 13.2%.

Nelnet Trading Up 0.7%

NYSE NNI opened at $141.46 on Friday. The business's 50-day moving average price is $133.31 and its two-hundred day moving average price is $132.34. Nelnet has a 12 month low of $105.45 and a 12 month high of $144.38. The firm has a market capitalization of $5.08 billion, a PE ratio of 12.02 and a beta of 0.83. The company has a current ratio of 28.27, a quick ratio of 28.27 and a debt-to-equity ratio of 2.18.

Nelnet (NYSE:NNI - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The credit services provider reported $1.94 EPS for the quarter, missing analysts' consensus estimates of $2.66 by ($0.72). Nelnet had a net margin of 18.99% and a return on equity of 12.43%. The company had revenue of $419.06 million during the quarter, compared to the consensus estimate of $443.84 million. On average, analysts expect that Nelnet will post 9.2 EPS for the current year.

About Nelnet

Nelnet, Inc NYSE: NNI is a diversified education services company founded in 1978 and headquartered in Lincoln, Nebraska. Originally established as the National Education Loan Network by Michael S. Dunlap, the company has grown into a prominent provider of student loan servicing and education finance solutions in the United States.

At the core of Nelnet's business is student loan servicing, where it administers and manages federal and private education loans on behalf of borrowers and lending partners.

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