Royalty Pharma PLC (NASDAQ:RPRX) to Issue Quarterly Dividend of $0.22

Key Points

• Royalty Pharma PLC has announced a quarterly dividend of $0.22 per share, with the payment date set for December 10th, and the ex-dividend date on November 14th, representing an annualized dividend yield of 2.4%.
• The company's current payout ratio stands at 17.5%, indicating that it is well-positioned to maintain its dividend amidst expected earnings of $4.86 per share next year.
• Royalty Pharma's stock is currently rated as a "Buy" by analysts, with a consensus target price of $46.00, following various adjustments from research firms.

Royalty Pharma PLC (NASDAQ:RPRX - Get Free Report) announced a quarterly dividend on Friday, October 17th. Stockholders of record on Friday, November 14th will be paid a dividend of 0.22 per share by the biopharmaceutical company on Wednesday, December 10th. This represents a c) annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Friday, November 14th.

Royalty Pharma has a payout ratio of 17.5% meaning its dividend is sufficiently covered by earnings. Research analysts expect Royalty Pharma to earn $4.86 per share next year, which means the company should continue to be able to cover its $0.88 annual dividend with an expected future payout ratio of 18.1%.

Royalty Pharma Price Performance

RPRX stock traded up $0.67 during trading on Friday, reaching $37.01. 2,373,479 shares of the company were exchanged, compared to its average volume of 4,351,778. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.26 and a current ratio of 1.26. The company has a market cap of $21.58 billion, a P/E ratio of 21.39, a PEG ratio of 1.99 and a beta of 0.60. The stock's 50 day moving average price is $36.06 and its 200 day moving average price is $34.76. Royalty Pharma has a 52-week low of $24.05 and a 52-week high of $38.00.

Royalty Pharma (NASDAQ:RPRX - Get Free Report) last released its earnings results on Wednesday, August 6th. The biopharmaceutical company reported $1.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.10 by $0.04. Royalty Pharma had a net margin of 44.23% and a return on equity of 25.54%. The firm had revenue of $578.67 million during the quarter, compared to the consensus estimate of $750.06 million. As a group, analysts predict that Royalty Pharma will post 4.49 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms have commented on RPRX. Citigroup boosted their price target on shares of Royalty Pharma from $40.00 to $42.00 and gave the stock a "buy" rating in a research report on Tuesday, July 22nd. Wall Street Zen downgraded shares of Royalty Pharma from a "buy" rating to a "hold" rating in a research report on Saturday, September 13th. Morgan Stanley decreased their price objective on shares of Royalty Pharma from $55.00 to $54.00 and set an "overweight" rating for the company in a report on Friday, October 10th. Weiss Ratings raised shares of Royalty Pharma from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, October 8th. Finally, The Goldman Sachs Group initiated coverage on shares of Royalty Pharma in a report on Tuesday, September 30th. They set a "buy" rating and a $42.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating and four have assigned a Buy rating to the company's stock. According to MarketBeat, Royalty Pharma presently has a consensus rating of "Buy" and an average target price of $46.00.

Royalty Pharma Company Profile

Royalty Pharma plc operates as a buyer of biopharmaceutical royalties and a funder of innovations in the biopharmaceutical industry in the United States. It is also involved in the identification, evaluation, and acquisition of royalties on various biopharmaceutical therapies. In addition, the company collaborates with innovators from academic institutions, research hospitals and not-for-profits, small and mid-cap biotechnology companies, and pharmaceutical companies.

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