Stantec Inc. (NYSE:STN) to Issue Quarterly Dividend of $0.16

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 announced a quarterly dividend on Thursday, August 14th, Wall Street Journal reports. Investors 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 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 payout ratio of 15.0% indicating that 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 Price Performance

Stantec stock traded up $1.3350 during trading on Tuesday, reaching $107.3950. The company had a trading volume of 152,404 shares, compared to its average volume of 211,174. The firm's 50-day simple moving average is $108.97 and its 200 day simple moving average is $95.05. Stantec has a 1-year low of $73.18 and a 1-year high of $113.50. The firm has a market capitalization of $12.25 billion, a PE ratio of 39.20 and a beta of 1.03. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.44 and a current ratio of 1.44.

Stantec (NYSE:STN - Get Free Report) TSE: STN last released its quarterly earnings results on Wednesday, August 13th. The business services provider reported $0.98 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.98. Stantec had a net margin of 5.62% and a return on equity of 19.03%. The firm had revenue of $1.17 billion for the quarter, compared to analysts' expectations of $1.64 billion. Stantec has set its FY 2025 guidance at 3.784-3.880 EPS. As a group, equities research analysts anticipate that Stantec will post 3.05 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Simplex Trading LLC acquired a new position in shares of Stantec during the 2nd quarter valued at about $32,000. Wealth Preservation Advisors LLC acquired a new position in shares of Stantec during the 1st quarter valued at about $26,000. Caitong International Asset Management Co. Ltd boosted its position in shares of Stantec by 4,700.0% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 384 shares of the business services provider's stock valued at $42,000 after acquiring an additional 376 shares during the last quarter. Tower Research Capital LLC TRC boosted its position in shares of Stantec by 632.8% during the 4th quarter. Tower Research Capital LLC TRC now owns 491 shares of the business services provider's stock valued at $39,000 after acquiring an additional 424 shares during the last quarter. Finally, Tower Research Capital LLC TRC boosted its position in shares of Stantec by 423.7% during the 2nd quarter. Tower Research Capital LLC TRC now owns 508 shares of the business services provider's stock valued at $55,000 after acquiring an additional 411 shares during the last quarter. Institutional investors and hedge funds own 63.86% of the company's stock.

About Stantec

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.