SAP SE (NYSE:SAP) Raises Dividend to $2.93 Per Share

Key Points

• SAP raised its annual dividend to $2.9291 per share (a 15.2% increase from $2.54); shareholders of record on May 5 will be paid on May 15 and the ex-dividend date is May 5.
• Dividend sustainability looks solid with a current payout ratio of 22.4% and analysts forecasting $7.77 EPS next year, implying an expected payout ratio of about 23.7%.
• SAP beat quarterly estimates with $1.90 EPS and $11.36 billion in revenue, though the stock opened down ~1% at $167.80; the company has a market cap of $206.1 billion and a P/E of 23.8.

SAP SE (NYSE:SAP - Get Free Report) declared an annual dividend on Tuesday, April 14th. Investors of record on Tuesday, May 5th will be paid a dividend of 2.9291 per share by the software maker on Friday, May 15th. This represents a yield of 175.0%. The ex-dividend date of this dividend is Tuesday, May 5th. This is a 15.2% increase from SAP's previous annual dividend of $2.54.

SAP has raised its dividend by an average of 0.1%annually over the last three years. SAP has a payout ratio of 22.4% indicating that its dividend is sufficiently covered by earnings. Research analysts expect SAP to earn $7.77 per share next year, which means the company should continue to be able to cover its $1.84 annual dividend with an expected future payout ratio of 23.7%.

SAP Trading Down 1.0%

Shares of SAP opened at $167.80 on Wednesday. The stock has a 50-day moving average price of $188.20 and a 200 day moving average price of $227.37. SAP has a one year low of $160.66 and a one year high of $313.28. The company has a market capitalization of $206.14 billion, a P/E ratio of 23.80, a P/E/G ratio of 1.92 and a beta of 1.24. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.16 and a current ratio of 1.16.

SAP (NYSE:SAP - Get Free Report) last announced its quarterly earnings data on Thursday, January 29th. The software maker reported $1.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.77 by $0.13. SAP had a return on equity of 16.54% and a net margin of 19.92%.The firm had revenue of $11.36 billion for the quarter, compared to analysts' expectations of $9.77 billion. During the same quarter in the prior year, the firm posted $1.40 earnings per share. SAP's revenue for the quarter was up 3.3% compared to the same quarter last year. Sell-side analysts forecast that SAP will post 6.55 EPS for the current fiscal year.

Institutional Trading of SAP

Institutional investors and hedge funds have recently made changes to their positions in the stock. First PREMIER Bank acquired a new stake in SAP in the 3rd quarter valued at approximately $25,000. Retirement Wealth Solutions LLC increased its position in SAP by 246.4% in the 3rd quarter. Retirement Wealth Solutions LLC now owns 97 shares of the software maker's stock valued at $26,000 after acquiring an additional 69 shares during the period. Sound Income Strategies LLC increased its position in SAP by 109.4% in the 4th quarter. Sound Income Strategies LLC now owns 111 shares of the software maker's stock valued at $26,000 after acquiring an additional 58 shares during the period. Abich Financial Wealth Management LLC acquired a new stake in SAP in the 3rd quarter valued at approximately $27,000. Finally, Copia Wealth Management acquired a new stake in SAP in the 3rd quarter valued at approximately $28,000.

About SAP

SAP SE is a global enterprise software company headquartered in Walldorf, Germany. Founded in 1972 by five former IBM engineers, the company's name is an acronym for Systeme, Anwendungen und Produkte in der Datenverarbeitung (Systems, Applications & Products in Data Processing). SAP develops and sells software and services that help organizations manage business processes across finance, human resources, procurement, manufacturing, supply chain and customer relationships.

SAP's product portfolio spans on‑premises and cloud offerings, anchored by its enterprise resource planning (ERP) solutions such as SAP S/4HANA and the SAP HANA in‑memory database and platform.

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