Quad Graphics, Inc (NYSE:QUAD) to Issue Quarterly Dividend of $0.10

Key Points

• Quad Graphics declared a quarterly dividend of $0.10 per share (annualized $0.40), with an ex-dividend/record date of May 21 and payment on June 5, implying a yield of about 5.3%.
• The dividend appears sustainable—Quad's current payout ratio is 38.1%, and analysts forecast $1.39 EPS next year, which would lower the expected payout ratio to roughly 28.8%.
• Shares recently traded at about $7.50 (down 0.9%), with a market cap near $392M, a low P/E of ~7.5 but relatively high leverage (debt-to-equity ~2.52).

Quad Graphics, Inc (NYSE:QUAD - Get Free Report) declared a quarterly dividend on Tuesday, April 21st. Investors of record on Thursday, May 21st will be paid a dividend of 0.10 per share by the business services provider on Friday, June 5th. This represents a c) annualized dividend and a yield of 5.3%. The ex-dividend date of this dividend is Thursday, May 21st.

Quad Graphics has increased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 1 consecutive years. Quad Graphics has a dividend payout ratio of 38.1% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Quad Graphics to earn $1.39 per share next year, which means the company should continue to be able to cover its $0.40 annual dividend with an expected future payout ratio of 28.8%.

Quad Graphics Stock Down 0.9%

NYSE QUAD traded down $0.07 during trading hours on Tuesday, hitting $7.50. 138,646 shares of the company traded hands, compared to its average volume of 175,910. The business's 50-day moving average is $6.86 and its 200-day moving average is $6.28. Quad Graphics has a twelve month low of $4.50 and a twelve month high of $7.75. The company has a debt-to-equity ratio of 2.52, a quick ratio of 0.63 and a current ratio of 0.86. The stock has a market capitalization of $391.95 million, a price-to-earnings ratio of 7.49 and a beta of 1.16.

Quad Graphics (NYSE:QUAD - Get Free Report) last issued its quarterly earnings results on Tuesday, February 17th. The business services provider reported $0.36 EPS for the quarter, meeting the consensus estimate of $0.36. Quad Graphics had a return on equity of 49.71% and a net margin of 1.12%.The firm had revenue of $630.60 million during the quarter, compared to analysts' expectations of $632.90 million. Sell-side analysts anticipate that Quad Graphics will post 1.18 earnings per share for the current year.

Institutional Trading of Quad Graphics

A number of hedge funds have recently made changes to their positions in the business. Miller Value Partners LLC lifted its position in shares of Quad Graphics by 4.4% in the fourth quarter. Miller Value Partners LLC now owns 2,737,890 shares of the business services provider's stock valued at $17,167,000 after buying an additional 114,415 shares during the last quarter. Vanguard Group Inc. lifted its position in shares of Quad Graphics by 0.7% in the third quarter. Vanguard Group Inc. now owns 1,799,720 shares of the business services provider's stock valued at $11,266,000 after buying an additional 11,773 shares during the last quarter. LSV Asset Management lifted its position in shares of Quad Graphics by 0.3% in the fourth quarter. LSV Asset Management now owns 1,353,001 shares of the business services provider's stock valued at $8,483,000 after buying an additional 3,687 shares during the last quarter. Geode Capital Management LLC lifted its position in shares of Quad Graphics by 0.3% in the second quarter. Geode Capital Management LLC now owns 703,720 shares of the business services provider's stock valued at $3,977,000 after buying an additional 1,837 shares during the last quarter. Finally, Segall Bryant & Hamill LLC lifted its position in shares of Quad Graphics by 49.5% in the fourth quarter. Segall Bryant & Hamill LLC now owns 462,898 shares of the business services provider's stock valued at $2,902,000 after buying an additional 153,172 shares during the last quarter. 39.52% of the stock is owned by institutional investors and hedge funds.

About Quad Graphics

Quad Graphics, Inc NYSE: QUAD is a global provider of print and related marketing services, serving a diverse range of clients in the publishing, retail, e-commerce and consumer packaged goods sectors. The company offers end-to-end solutions that span traditional print production, supply chain management and digital marketing support. Quad Graphics leverages a network of production facilities and distribution centers to deliver high-quality printed materials and integrated marketing programs that help clients reach their target audiences across multiple channels.

The company's core offerings include magazine and catalog printing, direct mail, retail inserts, shopper marketing materials, custom packaging and point-of-sale displays.

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