STERIS plc (NYSE:STE) Declares $0.63 Quarterly Dividend

Key Points

• STERIS declared a $0.63 quarterly dividend (annualized $2.52, ~1.2% yield) with an ex‑dividend/record date of June 8 and payment on June 26.
• The dividend appears well covered and sustainable: STERIS has raised its payout for 20 consecutive years, has a low payout ratio (~22.9%), and analysts forecast about $11.04 EPS next year (implying a ~22.8% forward payout ratio).
• Stock and analyst snapshot: STE trades near $213 with a market cap of $20.9B and a P/E of 29.7, and carries a consensus rating of “Moderate Buy” with a $275.20 price target (5 Buys, 2 Holds).

STERIS plc (NYSE:STE - Get Free Report) announced a quarterly dividend on Tuesday, May 5th. Shareholders of record on Monday, June 8th will be given a dividend of 0.63 per share by the medical equipment provider on Friday, June 26th. This represents a c) dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Monday, June 8th.

STERIS has increased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 20 years. STERIS has a payout ratio of 22.9% meaning its dividend is sufficiently covered by earnings. Research analysts expect STERIS to earn $11.04 per share next year, which means the company should continue to be able to cover its $2.52 annual dividend with an expected future payout ratio of 22.8%.

STERIS Stock Performance

STE opened at $212.98 on Wednesday. The company has a market capitalization of $20.89 billion, a price-to-earnings ratio of 29.70 and a beta of 0.95. The company has a debt-to-equity ratio of 0.26, a current ratio of 2.48 and a quick ratio of 1.75. STERIS has a 1-year low of $209.61 and a 1-year high of $269.44. The business has a 50 day moving average price of $225.61 and a two-hundred day moving average price of $244.63.

STERIS (NYSE:STE - Get Free Report) last issued its quarterly earnings results on Wednesday, February 4th. The medical equipment provider reported $2.53 earnings per share for the quarter, meeting analysts' consensus estimates of $2.53. STERIS had a net margin of 12.15% and a return on equity of 14.34%. During the same period in the prior year, the business posted $2.32 earnings per share. The firm's quarterly revenue was up 9.2% compared to the same quarter last year. Research analysts predict that STERIS will post 10.22 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on STE shares. Weiss Ratings downgraded shares of STERIS from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, April 16th. Wall Street Zen downgraded STERIS from a "strong-buy" rating to a "buy" rating in a research report on Sunday, April 26th. Five analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $275.20.

STERIS Company Profile

STERIS Corporation NYSE: STE is a global provider of infection prevention, contamination control and procedural products and services for the healthcare, life sciences, pharmaceutical and medical device industries. The company develops, manufactures and supports a broad portfolio of equipment and consumables designed to reduce risk of infection, maintain sterile environments and support critical clinical and manufacturing procedures.

Its offerings include sterilization and decontamination systems, instrument washers and washers-disinfectors, endoscope reprocessing solutions, surgical equipment and procedural disposables, and contamination-control products for cleanrooms and laboratories.

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