Prudential Financial, Inc. (NYSE:PRU) Announces $1.40 Quarterly Dividend

Key Points

• Prudential Financial declared a quarterly dividend of $1.40 per share, payable September 10 to shareholders of record on August 25. The dividend implies a 4.6% annualized yield and continues the company’s 18-year streak of annual dividend increases.
• The dividend appears well covered, with a payout ratio of about 38%; analysts expect earnings of $14.68 per share next year versus an annual dividend of $5.60.
• Prudential’s latest quarterly earnings beat expectations, with EPS of $4.08 versus the $3.52 consensus estimate. However, analyst sentiment remains cautious: the stock has a consensus “Reduce” rating and an average target price of $107.62.

Prudential Financial, Inc. (NYSE:PRU - Get Free Report) declared a quarterly dividend on Tuesday, August 11th. Investors of record on Tuesday, August 25th will be paid a dividend of 1.40 per share by the financial services provider on Thursday, September 10th. This represents a c) annualized dividend and a dividend yield of 4.6%. The ex-dividend date is Tuesday, August 25th.

Prudential Financial has increased its dividend by an average of 0.0%per year over the last three years and has increased its dividend annually for the last 18 consecutive years. Prudential Financial has a dividend payout ratio of 38.0% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Prudential Financial to earn $14.68 per share next year, which means the company should continue to be able to cover its $5.60 annual dividend with an expected future payout ratio of 38.1%.

Prudential Financial Stock Performance

NYSE PRU traded down $0.15 on Wednesday, reaching $122.17. 91,456 shares of the company's stock traded hands, compared to its average volume of 2,150,296. Prudential Financial has a fifty-two week low of $91.89 and a fifty-two week high of $127.72. The company has a debt-to-equity ratio of 0.62, a quick ratio of 0.16 and a current ratio of 0.16. The firm has a market cap of $42.15 billion, a price-to-earnings ratio of 11.08, a P/E/G ratio of 2.34 and a beta of 0.84. The stock has a 50 day moving average price of $113.68 and a 200-day moving average price of $104.87.

Prudential Financial (NYSE:PRU - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The financial services provider reported $4.08 earnings per share for the quarter, topping the consensus estimate of $3.52 by $0.56. The company had revenue of $14.15 billion for the quarter, compared to the consensus estimate of $14.36 billion. Prudential Financial had a return on equity of 16.68% and a net margin of 6.51%.During the same period last year, the firm earned $3.58 EPS. Equities research analysts predict that Prudential Financial will post 14.07 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on PRU shares. Piper Sandler upped their target price on Prudential Financial from $110.00 to $128.00 and gave the stock a "neutral" rating in a research note on Tuesday. Mizuho boosted their price target on Prudential Financial from $101.00 to $109.00 and gave the company a "neutral" rating in a report on Thursday, July 9th. Keefe, Bruyette & Woods upped their price objective on Prudential Financial from $113.00 to $123.00 and gave the stock a "market perform" rating in a research report on Tuesday. TD Cowen raised their price objective on shares of Prudential Financial from $102.00 to $114.00 and gave the stock a "hold" rating in a research note on Wednesday, July 22nd. Finally, Jefferies Financial Group lifted their target price on shares of Prudential Financial from $105.00 to $110.00 and gave the company a "hold" rating in a report on Friday, July 10th. One investment analyst has rated the stock with a Buy rating, eleven have given a Hold rating and five have given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus target price of $107.62.

Prudential Financial Company Profile

Prudential Financial, Inc, headquartered in Newark, New Jersey, is a diversified financial services company with roots dating to 1875. The firm provides a range of insurance, retirement and investment products aimed at helping individual and institutional clients manage risk, accumulate and protect wealth, and plan for retirement. Prudential's long history in life insurance and related financial services has positioned it as a major participant in the U.S. insurance market and a provider of services to a broad client base.

Prudential's core business activities include individual life insurance, annuities, retirement solutions and group insurance products for employers.

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