Open Text Corporation (NASDAQ:OTEX) Announces Quarterly Dividend of $0.28

Key Points

• Open Text declared a quarterly dividend of $0.28 per share, payable September 18 to shareholders of record on September 4, implying an annualized dividend of approximately $1.10 and a 4.4% yield.
• The dividend is supported by the company’s earnings, with a payout ratio of 26.4%; analysts expect next year’s earnings to cover the projected 25.5% payout ratio.
• Open Text’s latest quarterly results exceeded expectations, with adjusted EPS of $1.01 versus $0.94 expected and revenue of $1.28 billion, up 2.2% year over year.

Open Text Corporation (NASDAQ:OTEX - Get Free Report) TSE: OTC declared a quarterly dividend on Wednesday, August 5th. Investors of record on Friday, September 4th will be given a dividend of 0.28 per share by the software maker on Friday, September 18th. This represents a c) dividend on an annualized basis and a yield of 4.4%. The ex-dividend date of this dividend is Friday, September 4th. This is a 1.8% increase from Open Text's previous quarterly dividend of $0.28.

Open Text has decreased its dividend payment by an average of 0.1%per year over the last three years. Open Text has a payout ratio of 26.4% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Open Text to earn $4.32 per share next year, which means the company should continue to be able to cover its $1.10 annual dividend with an expected future payout ratio of 25.5%.

Open Text Stock Performance

Shares of OTEX traded up $0.01 during mid-day trading on Thursday, reaching $25.66. 4,340,431 shares of the company's stock were exchanged, compared to its average volume of 2,164,353. The company has a debt-to-equity ratio of 1.56, a current ratio of 0.94 and a quick ratio of 0.94. The stock has a market capitalization of $6.21 billion, a PE ratio of 12.52 and a beta of 1.03. Open Text has a 52-week low of $19.77 and a 52-week high of $39.90. The business's fifty day simple moving average is $22.98 and its 200-day simple moving average is $23.64.

Open Text (NASDAQ:OTEX - Get Free Report) TSE: OTC last announced its earnings results on Thursday, May 7th. The software maker reported $1.01 EPS for the quarter, beating analysts' consensus estimates of $0.94 by $0.07. Open Text had a net margin of 9.91% and a return on equity of 24.77%. The business had revenue of $1.28 billion during the quarter, compared to analysts' expectations of $1.26 billion. During the same period in the prior year, the company earned $0.82 earnings per share. The business's revenue was up 2.2% compared to the same quarter last year. On average, equities research analysts expect that Open Text will post 4.05 earnings per share for the current year.

Open Text Company Profile

Open Text Corporation is a Canadian enterprise information management (EIM) software company that develops solutions for organizations seeking to manage, protect and extract insight from their unstructured and structured data. The company's platform encompasses document management, records management, digital asset management and archiving, enabling companies to govern information across its lifecycle.

Open Text's product suite includes content services, business process management, customer experience management, analytics and security products.

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