Northern Trust Corporation (NASDAQ:NTRS) Declares Dividend Increase - $0.88 Per Share

Key Points

• Northern Trust declared a quarterly dividend of $0.88 per share, up 10% from the prior $0.80 payout. The dividend is payable on October 1 to shareholders of record as of September 4, with an annualized yield of about 1.9%.
• The company’s dividend appears well covered, with a 37.5% payout ratio and analysts expecting earnings of $12.22 per share next year. That would leave an estimated future payout ratio of 26.2%.
• Northern Trust also reported solid recent earnings, posting $2.71 EPS and $2.21 billion in revenue for the quarter, both ahead of expectations. Revenue rose 13.8% year over year, and shares recently traded near $185.06.

Northern Trust Corporation (NASDAQ:NTRS - Get Free Report) declared a quarterly dividend on Tuesday, July 21st. Investors of record on Friday, September 4th will be paid a dividend of 0.88 per share by the asset manager on Thursday, October 1st. This represents a c) dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Friday, September 4th. This is a 10.0% increase from Northern Trust's previous quarterly dividend of $0.80.

Northern Trust has increased its dividend by an average of 0.0%per year over the last three years. Northern Trust has a payout ratio of 37.5% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Northern Trust to earn $12.22 per share next year, which means the company should continue to be able to cover its $3.20 annual dividend with an expected future payout ratio of 26.2%.

Northern Trust Price Performance

Shares of NASDAQ:NTRS opened at $185.06 on Wednesday. The firm has a market cap of $34.24 billion, a price-to-earnings ratio of 19.38, a P/E/G ratio of 1.17 and a beta of 1.25. The firm has a fifty day moving average price of $173.88 and a 200 day moving average price of $157.15. Northern Trust has a fifty-two week low of $118.99 and a fifty-two week high of $191.60. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.62 and a current ratio of 0.62.

Northern Trust (NASDAQ:NTRS - Get Free Report) last announced its quarterly earnings results on Tuesday, April 21st. The asset manager reported $2.71 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.37 by $0.34. The company had revenue of $2.21 billion for the quarter, compared to the consensus estimate of $2.13 billion. Northern Trust had a net margin of 12.84% and a return on equity of 15.94%. During the same period in the previous year, the firm posted $1.90 EPS. Northern Trust's revenue for the quarter was up 13.8% compared to the same quarter last year. As a group, sell-side analysts expect that Northern Trust will post 11.29 earnings per share for the current fiscal year.

About Northern Trust

Northern Trust Corporation NASDAQ: NTRS is a global financial services firm headquartered in Chicago that provides asset servicing, asset management and wealth management solutions to institutions, corporations and high-net-worth individuals. The company's core businesses include custody and fund administration, investment operations outsourcing, trust and fiduciary services, private banking, and retirement and defined contribution plan services.

Northern Trust's product and service offerings span custody and fund accounting, portfolio and performance analytics, securities lending, cash management and foreign exchange, as well as discretionary and non-discretionary investment management.

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