The Scotts Miracle-Gro Company (NYSE:SMG) Announces $0.66 Quarterly Dividend

Key Points

• Scotts Miracle-Gro declared a quarterly dividend of $0.66 per share, payable September 4 to shareholders of record on August 21. The dividend implies an annualized payout of $2.64 and a 3.7% yield.
• The dividend appears financially supported, with a current payout ratio of 62.9% and an expected future payout ratio of 56.9%, although payments have declined by an average of 0.2% annually over the past three years.
• Scotts Miracle-Gro reported quarterly EPS of $2.82, beating estimates of $2.48, while revenue reached $1.17 billion and increased 1.1% year over year. Shares opened at $70.47, with institutional investors owning 74.07% of the stock.

The Scotts Miracle-Gro Company (NYSE:SMG - Get Free Report) announced a quarterly dividend on Tuesday, July 28th. Shareholders of record on Friday, August 21st will be given a dividend of 0.66 per share by the basic materials company on Friday, September 4th. This represents a c) annualized dividend and a yield of 3.7%. The ex-dividend date of this dividend is Friday, August 21st.

Scotts Miracle-Gro has decreased its dividend payment by an average of 0.2%annually over the last three years. Scotts Miracle-Gro has a payout ratio of 62.9% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Scotts Miracle-Gro to earn $4.64 per share next year, which means the company should continue to be able to cover its $2.64 annual dividend with an expected future payout ratio of 56.9%.

Scotts Miracle-Gro Price Performance

Shares of Scotts Miracle-Gro stock opened at $70.47 on Wednesday. The company's 50 day moving average price is $64.28 and its two-hundred day moving average price is $64.15. The firm has a market capitalization of $4.10 billion, a P/E ratio of 39.37 and a beta of 1.81. Scotts Miracle-Gro has a fifty-two week low of $52.00 and a fifty-two week high of $75.34.

Scotts Miracle-Gro (NYSE:SMG - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The basic materials company reported $2.82 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.48 by $0.34. The company had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.17 billion. Scotts Miracle-Gro had a negative return on equity of 79.61% and a net margin of 3.27%.The firm's revenue was up 1.1% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.59 earnings per share. On average, analysts expect that Scotts Miracle-Gro will post 4.3 earnings per share for the current year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of SMG. Captrust Financial Advisors raised its position in Scotts Miracle-Gro by 12,034.5% in the 2nd quarter. Captrust Financial Advisors now owns 1,008,623 shares of the basic materials company's stock valued at $66,529,000 after buying an additional 1,000,311 shares during the last quarter. Epoch Investment Partners Inc. bought a new stake in Scotts Miracle-Gro during the first quarter valued at approximately $50,058,000. Arrowstreet Capital Limited Partnership lifted its stake in Scotts Miracle-Gro by 161.1% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,289,974 shares of the basic materials company's stock worth $78,443,000 after purchasing an additional 795,970 shares during the last quarter. AQR Capital Management LLC raised its holdings in shares of Scotts Miracle-Gro by 458.7% during the 2nd quarter. AQR Capital Management LLC now owns 822,743 shares of the basic materials company's stock valued at $54,268,000 after buying an additional 675,493 shares in the last quarter. Finally, Brandes Investment Partners LP boosted its stake in shares of Scotts Miracle-Gro by 362.8% in the 4th quarter. Brandes Investment Partners LP now owns 737,546 shares of the basic materials company's stock valued at $43,036,000 after purchasing an additional 578,174 shares in the last quarter. Institutional investors own 74.07% of the company's stock.

About Scotts Miracle-Gro

Scotts Miracle-Gro Company is a leading developer, manufacturer and distributor of consumer lawn and garden products. The firm serves both retail and professional customers through an array of branded offerings that include lawn fertilizers, grass seed, pest and disease control solutions, plant foods and specialty products for indoor and outdoor gardening. Its portfolio spans well-known names such as Scotts®, Miracle-Gro®, Ortho® and various hydroponic and specialty garden brands.

Headquartered in Marysville, Ohio, the company traces its roots to O.M.

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