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

Key Points

• Omnicom declared a quarterly dividend of $0.80 per share (annualized $3.20), with an ex-dividend/record date on June 10 and payable July 9, implying a yield of about 4.1%.
• The dividend appears well-covered: a current payout ratio of 36% and analysts' expected EPS of $12.35 next year imply a projected payout ratio of roughly 25.9%.
• Omnicom recently beat Q1 expectations, reporting $1.90 EPS versus $1.84 estimated and revenue of $6.24 billion (up 69.2% year-over-year), indicating solid near-term performance.

Omnicom Group Inc. (NYSE:OMC - Get Free Report) declared a quarterly dividend on Tuesday, May 5th. Shareholders of record on Wednesday, June 10th will be given a dividend of 0.80 per share by the business services provider on Thursday, July 9th. This represents a c) dividend on an annualized basis and a yield of 4.1%. The ex-dividend date of this dividend is Wednesday, June 10th.

Omnicom Group has increased its dividend by an average of 0.0%annually over the last three years. Omnicom Group has a payout ratio of 36.0% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Omnicom Group to earn $12.35 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 25.9%.

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Omnicom Group Price Performance

OMC stock opened at $77.59 on Wednesday. The company has a quick ratio of 0.77, a current ratio of 0.91 and a debt-to-equity ratio of 0.99. Omnicom Group has a 12 month low of $66.33 and a 12 month high of $87.17. The firm has a market cap of $22.11 billion, a P/E ratio of 198.95, a P/E/G ratio of 0.59 and a beta of 0.66. The company's 50-day moving average price is $78.26 and its two-hundred day moving average price is $76.79.

Omnicom Group (NYSE:OMC - Get Free Report) last released its earnings results on Tuesday, April 28th. The business services provider reported $1.90 EPS for the quarter, beating the consensus estimate of $1.84 by $0.06. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The firm had revenue of $6.24 billion for the quarter, compared to analyst estimates of $5.85 billion. During the same period last year, the firm earned $1.70 EPS. The business's quarterly revenue was up 69.2% compared to the same quarter last year. On average, analysts anticipate that Omnicom Group will post 10.91 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Omnicom Group

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Prosperity Consulting Group LLC grew its position in Omnicom Group by 32.1% during the 1st quarter. Prosperity Consulting Group LLC now owns 7,455 shares of the business services provider's stock worth $561,000 after acquiring an additional 1,810 shares during the last quarter. Aware Super Pty Ltd as trustee of Aware Super bought a new stake in Omnicom Group during the 1st quarter worth $6,562,000. Wealthfront Advisers LLC grew its position in Omnicom Group by 4.9% during the 1st quarter. Wealthfront Advisers LLC now owns 34,964 shares of the business services provider's stock worth $2,633,000 after acquiring an additional 1,636 shares during the last quarter. D.A. Davidson & CO. grew its position in Omnicom Group by 2.2% during the 1st quarter. D.A. Davidson & CO. now owns 11,400 shares of the business services provider's stock worth $859,000 after acquiring an additional 245 shares during the last quarter. Finally, Twin Capital Management Inc. grew its position in Omnicom Group by 156.9% during the 1st quarter. Twin Capital Management Inc. now owns 43,465 shares of the business services provider's stock worth $3,273,000 after acquiring an additional 26,549 shares during the last quarter. 91.97% of the stock is owned by institutional investors.

About Omnicom Group

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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