Omnicom Group Inc. (NYSE:OMC) Plans $0.80 Quarterly Dividend

Key Points

• Omnicom Group announced a quarterly dividend of $0.80 per share, with the dividend payable on October 9 to shareholders of record as of September 18. The annualized dividend implies a 3.8% yield.
• The dividend appears well covered by earnings, with a 36.0% payout ratio and analysts expecting the company to earn $12.53 per share next year, suggesting room to support its $3.20 annual dividend.
• Omnicom recently reported stronger-than-expected quarterly results, posting $1.90 EPS versus estimates of $1.84 and $6.24 billion in revenue versus expectations of $5.85 billion, while institutional investors hold nearly 92% of the stock.

Omnicom Group Inc. (NYSE:OMC - Get Free Report) announced a quarterly dividend on Thursday, July 16th. Investors of record on Friday, September 18th will be given a dividend of 0.80 per share by the business services provider on Friday, October 9th. This represents a c) annualized dividend and a yield of 3.8%. The ex-dividend date of this dividend is Friday, September 18th.

Omnicom Group has increased its dividend by an average of 0.0%per year over the last three years. Omnicom Group has a dividend payout ratio of 36.0% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Omnicom Group to earn $12.53 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 25.5%.

Omnicom Group Stock Performance

Shares of NYSE OMC opened at $84.03 on Friday. The stock has a 50 day moving average price of $75.70 and a 200 day moving average price of $76.78. Omnicom Group has a 52 week low of $66.33 and a 52 week high of $87.17. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.77 and a current ratio of 0.91. The stock has a market capitalization of $23.95 billion, a PE ratio of 215.46, a price-to-earnings-growth ratio of 0.48 and a beta of 0.63.

Omnicom Group (NYSE:OMC - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The business services provider reported $1.90 earnings per share for the quarter, topping the consensus estimate of $1.84 by $0.06. Omnicom Group had a return on equity of 24.48% and a net margin of 0.32%.The firm had revenue of $6.24 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same quarter in the previous year, the firm earned $1.70 EPS. The business's quarterly revenue was up 69.2% on a year-over-year basis. Analysts predict that Omnicom Group will post 10.97 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Omnicom Group

A number of large investors have recently made changes to their positions in the company. Activest Wealth Management grew its holdings in Omnicom Group by 2,960.0% in the 4th quarter. Activest Wealth Management now owns 306 shares of the business services provider's stock valued at $25,000 after buying an additional 296 shares in the last quarter. Bayforest Capital Ltd bought a new stake in shares of Omnicom Group in the fourth quarter valued at about $26,000. Elyxium Wealth LLC bought a new stake in shares of Omnicom Group in the fourth quarter valued at about $26,000. Legacy Wealth Managment LLC ID grew its stake in shares of Omnicom Group by 111.4% in the fourth quarter. Legacy Wealth Managment LLC ID now owns 334 shares of the business services provider's stock valued at $27,000 after acquiring an additional 176 shares in the last quarter. Finally, EFG International AG acquired a new position in shares of Omnicom Group in the fourth quarter valued at about $28,000. Institutional investors own 91.97% of the company's stock.

Omnicom Group Company Profile

Omnicom Group Inc NYSE: OMC is a global marketing and corporate communications holding company headquartered in New York City. Founded in 1986 through the merger of the BBDO, DDB and Needham Harper agencies, Omnicom has built a portfolio of leading brands and networks serving clients across diverse industries.

The company's primary business activities encompass advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and customer relationship management.

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