Stantec Inc. (NYSE:STN) Announces Dividend Increase - $0.16 Per Share

Key Points

• Stantec Inc. announced a quarterly dividend increase to $0.1635 per share, which is a 1.4% rise from its previous dividend of $0.16.
• The company's dividend payout ratio stands at 15.0%, indicating strong earnings coverage for the dividend, with projections for future earnings expected to remain supportive.
• Despite the positive dividend announcement, Stantec's stock declined by 2.2% during trading, reflecting broader market conditions or investor sentiment.

Stantec Inc. (NYSE:STN - Get Free Report) TSE: STN declared a quarterly dividend on Thursday, August 14th, Wall Street Journal reports. Stockholders of record on Monday, September 29th will be given a dividend of 0.1635 per share by the business services provider on Wednesday, October 15th. This represents a c) dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Monday, September 29th. This is a 1.4% increase from Stantec's previous quarterly dividend of $0.16.

Stantec has a dividend payout ratio of 15.0% meaning its dividend is sufficiently covered by earnings. Research analysts expect Stantec to earn $3.45 per share next year, which means the company should continue to be able to cover its $0.65 annual dividend with an expected future payout ratio of 18.8%.

Stantec Stock Down 2.2%

STN stock traded down $2.40 during trading on Thursday, hitting $106.34. 588,999 shares of the company's stock traded hands, compared to its average volume of 173,364. The company has a quick ratio of 1.38, a current ratio of 1.38 and a debt-to-equity ratio of 0.41. The firm has a market capitalization of $12.13 billion, a P/E ratio of 43.94 and a beta of 1.03. Stantec has a 1 year low of $73.18 and a 1 year high of $113.50. The business has a fifty day simple moving average of $108.89 and a two-hundred day simple moving average of $94.16.

Stantec (NYSE:STN - Get Free Report) TSE: STN last posted its quarterly earnings data on Wednesday, August 13th. The business services provider reported $0.98 earnings per share for the quarter, hitting analysts' consensus estimates of $0.98. The firm had revenue of $1.17 billion during the quarter, compared to analysts' expectations of $1.64 billion. Stantec had a return on equity of 18.22% and a net margin of 5.01%. Sell-side analysts anticipate that Stantec will post 3.05 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Mackenzie Financial Corp boosted its position in shares of Stantec by 166.5% during the 4th quarter. Mackenzie Financial Corp now owns 22,342,818 shares of the business services provider's stock worth $1,751,093,000 after acquiring an additional 13,958,790 shares in the last quarter. Vanguard Group Inc. grew its holdings in shares of Stantec by 1.1% during the first quarter. Vanguard Group Inc. now owns 4,624,935 shares of the business services provider's stock worth $383,352,000 after buying an additional 49,857 shares during the last quarter. The Manufacturers Life Insurance Company raised its holdings in Stantec by 28.8% during the first quarter. The Manufacturers Life Insurance Company now owns 4,309,182 shares of the business services provider's stock worth $359,131,000 after purchasing an additional 964,188 shares in the last quarter. Alliancebernstein L.P. grew its holdings in Stantec by 82.4% during the second quarter. Alliancebernstein L.P. now owns 3,449,311 shares of the business services provider's stock worth $374,871,000 after acquiring an additional 1,558,703 shares during the period. Finally, The Manufacturers Life Insurance Company lifted its stake in shares of Stantec by 19.3% in the fourth quarter. The Manufacturers Life Insurance Company now owns 3,344,994 shares of the business services provider's stock valued at $262,791,000 after purchasing an additional 542,305 shares during the period. Institutional investors and hedge funds own 63.86% of the company's stock.

Stantec Company Profile

Stantec Inc provides professional services in the areas of infrastructure and facilities to the public and private sectors in Canada, the United States, and internationally. It offers evaluation, planning, and designing infrastructure solutions; solutions for sustainable water resources, planning, management, and infrastructure; environmental services; integrated architecture, engineering, interior design, and planning solutions for buildings; and energy and resources solutions.

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