Omnicom Group Inc. (NYSE:OMC) to Issue Quarterly Dividend of $0.70

Omnicom Group Inc. (NYSE:OMC - Get Free Report) announced a quarterly dividend on Tuesday, May 7th, RTT News reports. Investors of record on Monday, June 10th will be paid a dividend of 0.70 per share by the business services provider on Tuesday, July 9th. This represents a $2.80 dividend on an annualized basis and a yield of 2.96%.

Omnicom Group has raised its dividend by an average of 2.5% annually over the last three years. Omnicom Group has a dividend payout ratio of 32.9% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Omnicom Group to earn $8.37 per share next year, which means the company should continue to be able to cover its $2.80 annual dividend with an expected future payout ratio of 33.5%.

Omnicom Group Stock Performance

NYSE:OMC traded up $1.53 on Tuesday, reaching $94.72. 1,864,494 shares of the company's stock were exchanged, compared to its average volume of 1,650,534. The stock has a fifty day simple moving average of $93.12 and a 200-day simple moving average of $87.14. Omnicom Group has a 52 week low of $72.20 and a 52 week high of $99.23. The company has a debt-to-equity ratio of 1.33, a current ratio of 0.93 and a quick ratio of 0.81. The firm has a market cap of $18.55 billion, a price-to-earnings ratio of 12.80, a P/E/G ratio of 2.18 and a beta of 0.96.

Omnicom Group (NYSE:OMC - Get Free Report) last released its quarterly earnings data on Monday, February 5th. The business services provider reported $2.20 earnings per share for the quarter, beating analysts' consensus estimates of $2.16 by $0.04. The business had revenue of $4.06 billion during the quarter, compared to analyst estimates of $4 billion. Omnicom Group had a net margin of 9.96% and a return on equity of 38.23%. Omnicom Group's revenue was up 5.0% compared to the same quarter last year. During the same period in the previous year, the business earned $2.09 EPS. As a group, sell-side analysts predict that Omnicom Group will post 7.81 earnings per share for the current year.

Insider Activity

In related news, Director Linda Johnson Rice sold 453 shares of the firm's stock in a transaction dated Friday, May 3rd. The stock was sold at an average price of $92.68, for a total value of $41,984.04. Following the sale, the director now directly owns 9,830 shares of the company's stock, valued at $911,044.40. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 1.30% of the company's stock.

Analysts Set New Price Targets

OMC has been the topic of a number of analyst reports. StockNews.com upgraded Omnicom Group from a "hold" rating to a "buy" rating in a research note on Thursday, April 18th. BNP Paribas raised Omnicom Group from a "neutral" rating to an "outperform" rating and set a $115.00 price target for the company in a research note on Thursday, March 28th. Macquarie increased their price objective on Omnicom Group from $100.00 to $110.00 and gave the company an "outperform" rating in a research report on Tuesday, April 2nd. UBS Group assumed coverage on Omnicom Group in a research report on Thursday, January 11th. They issued a "buy" rating and a $117.00 target price for the company. Finally, Barclays upgraded shares of Omnicom Group from an "equal weight" rating to an "overweight" rating and lifted their target price for the stock from $100.00 to $110.00 in a research report on Tuesday. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $104.40.

Omnicom Group Company Profile

Omnicom Group Inc, together with its subsidiaries, offers advertising, marketing, and corporate communications services. It provides a range of services in the areas of advertising and media, precision marketing, commerce and branding, experiential, execution and support, public relations, and healthcare.