Richardson Electronics, Ltd. (NASDAQ:RELL) to Issue $0.06 Quarterly Dividend

Key Points

• Declared a $0.06 quarterly dividend, payable May 27 to stockholders of record on May 8, which annualizes to $0.24 per share and represents a roughly 2.0% yield (ex-dividend date May 8).
• The dividend appears sustainable, with a current payout ratio of 43.6% and analysts projecting $0.84 in EPS next year—implying an expected future payout ratio around 28.6%.
• Richardson recently beat estimates with Q4 EPS $0.07 vs. $0.04 expected and revenue of $55.47M (vs. $53.13M est.), though the stock trades at a high trailing P/E (~235) and a market cap near $171M.

Richardson Electronics, Ltd. (NASDAQ:RELL - Get Free Report) declared a quarterly dividend on Wednesday, April 8th. Stockholders of record on Friday, May 8th will be paid a dividend of 0.06 per share by the technology company on Wednesday, May 27th. This represents a c) dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Friday, May 8th.

Richardson Electronics has a dividend payout ratio of 43.6% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Richardson Electronics to earn $0.84 per share next year, which means the company should continue to be able to cover its $0.24 annual dividend with an expected future payout ratio of 28.6%.

Richardson Electronics Stock Performance

Shares of RELL opened at $11.76 on Thursday. The firm has a market capitalization of $170.76 million, a price-to-earnings ratio of 235.25, a price-to-earnings-growth ratio of 1.75 and a beta of 1.13. Richardson Electronics has a one year low of $7.57 and a one year high of $15.34. The stock's fifty day moving average is $11.93 and its 200-day moving average is $11.11.

Richardson Electronics (NASDAQ:RELL - Get Free Report) last issued its quarterly earnings results on Wednesday, April 8th. The technology company reported $0.07 EPS for the quarter, beating analysts' consensus estimates of $0.04 by $0.03. The company had revenue of $55.47 million for the quarter, compared to analyst estimates of $53.13 million. Richardson Electronics had a return on equity of 3.30% and a net margin of 0.38%. Analysts forecast that Richardson Electronics will post 0.27 EPS for the current fiscal year.

About Richardson Electronics

Richardson Electronics, Ltd. NASDAQ: RELL is a global manufacturer, distributor and servicer of engineered components and subsystems for a diverse range of industrial, medical and scientific applications. The company specializes in vacuum electron devices, high-voltage power supplies and related electronic components, offering klystrons, traveling wave tubes, magnetrons, X-ray tubes, microwave amplifiers and power conversion products. Its solutions support customers in power grid management, semiconductor processing, medical imaging, scientific instrumentation and telecommunications.

In addition to its manufacturing capabilities, Richardson Electronics maintains a broad distribution network comprising thousands of standard and custom parts.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.