Royalty Pharma PLC (NASDAQ:RPRX) Declares $0.24 Quarterly Dividend

Key Points

• Quarterly dividend of $0.235 per share declared, payable June 10 to holders of record May 15, implying an annualized $0.94 dividend and a yield of about 1.9%.
• Royalty Pharma has raised its dividend for five consecutive years and has a low payout ratio (~18.7%), with analysts forecasting a similar ~19.3% payout next year, suggesting earnings comfortably cover the dividend.
• Shares jumped ~3.1% to $50 after the quarter in which EPS beat at $1.46 (vs. $1.33 est.) while revenue of $622M missed expectations; the company has a market cap of about $28.8B and a P/E near 37.

Royalty Pharma PLC (NASDAQ:RPRX - Get Free Report) announced a quarterly dividend on Friday, April 17th. Investors of record on Friday, May 15th will be paid a dividend of 0.235 per share by the biopharmaceutical company on Wednesday, June 10th. This represents a c) annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Friday, May 15th.

Royalty Pharma has raised its dividend by an average of 0.2%per year over the last three years and has increased its dividend annually for the last 5 consecutive years. Royalty Pharma has a dividend payout ratio of 18.7% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Royalty Pharma to earn $4.86 per share next year, which means the company should continue to be able to cover its $0.94 annual dividend with an expected future payout ratio of 19.3%.

Royalty Pharma Stock Up 3.1%

Shares of NASDAQ:RPRX traded up $1.52 during mid-day trading on Friday, hitting $50.00. 3,035,165 shares of the company traded hands, compared to its average volume of 3,547,564. The firm has a market cap of $28.84 billion, a P/E ratio of 37.04, a PEG ratio of 3.11 and a beta of 0.39. The company has a debt-to-equity ratio of 0.88, a quick ratio of 2.40 and a current ratio of 2.40. Royalty Pharma has a 52-week low of $31.58 and a 52-week high of $50.00. The firm's 50 day simple moving average is $46.35 and its 200 day simple moving average is $41.41.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last issued its quarterly earnings data on Wednesday, February 11th. The biopharmaceutical company reported $1.46 earnings per share for the quarter, beating analysts' consensus estimates of $1.33 by $0.13. Royalty Pharma had a return on equity of 28.21% and a net margin of 32.38%.The firm had revenue of $621.99 million during the quarter, compared to analyst estimates of $839.97 million. On average, equities analysts anticipate that Royalty Pharma will post 4.49 EPS for the current year.

About Royalty Pharma

Royalty Pharma plc is a specialty finance company that acquires biopharmaceutical royalty interests and provides non-dilutive financing to drug developers and rights holders. The firm purchases future royalty streams, milestone-contingent payments and other revenue rights linked to approved and late-stage pharmaceutical and biotechnology products. By paying upfront consideration for these rights, Royalty Pharma seeks to generate long-term cash flows tied to the commercial performance of a diversified portfolio of medicines.

The company's transaction structures include outright royalty purchases, structured financings and milestone arrangements tailored to the needs of innovator companies, academic institutions and investors.

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