Stantec Inc. to Issue Quarterly Dividend of C$0.24 (NYSE:STN)

Key Points

• Stantec announced a quarterly dividend of C$0.245 per share, payable October 15 to shareholders of record on September 29. The dividend yields approximately 1.3% and marks the company’s 13th consecutive year of dividend increases.
• The company’s dividend appears well covered, with a current payout ratio of 15.9%; analysts expect next year’s earnings of C$4.80 per share against an annual dividend of C$0.69.
• Stantec slightly exceeded quarterly earnings expectations, reporting C$1.16 in EPS versus the C$1.15 consensus, while revenue of C$1.25 billion came in below the C$1.26 billion estimate. Analysts maintain a “Moderate Buy” consensus rating with a C$175 price target.

Stantec Inc. (NYSE:STN - Get Free Report) TSE: STN announced a quarterly dividend on Wednesday, August 12th. Investors of record on Tuesday, September 29th will be paid a dividend of 0.245 per share by the business services provider on Thursday, October 15th. This represents a c) annualized dividend and a yield of 1.3%. The ex-dividend date is Tuesday, September 29th.

Stantec has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 13 years. Stantec has a payout ratio of 15.9% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Stantec to earn $4.80 per share next year, which means the company should continue to be able to cover its $0.69 annual dividend with an expected future payout ratio of 14.4%.

Stantec Price Performance

STN opened at $74.38 on Thursday. The company has a current ratio of 1.35, a quick ratio of 1.35 and a debt-to-equity ratio of 0.47. The company has a market cap of $8.36 billion, a price-to-earnings ratio of 23.84 and a beta of 0.99. The stock has a fifty day simple moving average of $70.43 and a two-hundred day simple moving average of $82.18. Stantec has a 12-month low of $66.26 and a 12-month high of $114.51.

Stantec (NYSE:STN - Get Free Report) TSE: STN last released its earnings results on Wednesday, August 12th. The business services provider reported $1.16 earnings per share for the quarter, topping analysts' consensus estimates of $1.15 by $0.01. Stantec had a net margin of 5.92% and a return on equity of 19.37%. The firm had revenue of $1.25 billion for the quarter, compared to the consensus estimate of $1.26 billion. Stantec has set its FY 2026 guidance at 4.370-4.490 EPS. Research analysts predict that Stantec will post 4.43 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

STN has been the topic of several recent research reports. Canadian Imperial Bank of Commerce restated an "outperform" rating on shares of Stantec in a research note on Tuesday, May 19th. Zacks Research downgraded shares of Stantec from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, May 13th. ATB Cormark Capital Markets raised shares of Stantec from a "hold" rating to a "moderate buy" rating in a report on Friday, May 15th. Wall Street Zen lowered shares of Stantec from a "strong-buy" rating to a "buy" rating in a report on Saturday, June 13th. Finally, Weiss Ratings lowered Stantec from a "hold (c)" rating to a "hold (c-)" rating in a report on Tuesday. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat, Stantec presently has an average rating of "Moderate Buy" and a consensus price target of $175.00.

Stantec Company Profile

Stantec is a global design and consulting firm offering professional services in engineering, architecture, and environmental sciences. The company partners with public and private clients to deliver solutions spanning infrastructure, water, energy and resources, and community development. Through an integrated approach, Stantec manages projects from initial planning and conceptual design through construction and commissioning, focusing on sustainability and innovation.

The firm's service portfolio includes civil infrastructure design, building systems engineering, environmental assessments, and project management.

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