UFP Industries, Inc. Announces Quarterly Dividend of $0.36 (NASDAQ:UFPI)

Key Points

• UFP Industries announced a quarterly dividend of $0.36 per share, payable June 15 to shareholders of record on June 1, which annualizes to $1.44 and yields about 1.5%.
• The company has raised its dividend for five consecutive years and maintains a low payout ratio (~21%), with analysts forecasting about $5.90 EPS next year—implying the dividend should remain well covered (projected payout ~24%).
• UFP missed last quarter's estimates (EPS $0.70 vs. $1.03) and saw revenue fall 9% YoY to $1.33B; the stock trades near $95 and carries an average analyst rating of Hold with a consensus target of $107.

UFP Industries, Inc. (NASDAQ:UFPI - Get Free Report) announced a quarterly dividend on Wednesday, April 22nd. Shareholders of record on Monday, June 1st will be given a dividend of 0.36 per share by the construction company on Monday, June 15th. This represents a c) annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Monday, June 1st.

UFP Industries has increased its dividend by an average of 0.2%annually over the last three years and has raised its dividend every year for the last 5 years. UFP Industries has a payout ratio of 21.1% meaning its dividend is sufficiently covered by earnings. Equities analysts expect UFP Industries to earn $5.90 per share next year, which means the company should continue to be able to cover its $1.44 annual dividend with an expected future payout ratio of 24.4%.

UFP Industries Stock Performance

NASDAQ:UFPI traded down $1.49 on Friday, hitting $94.99. The company's stock had a trading volume of 120,691 shares, compared to its average volume of 370,151. The company has a current ratio of 4.59, a quick ratio of 3.13 and a debt-to-equity ratio of 0.07. The stock has a fifty day moving average of $96.49 and a two-hundred day moving average of $96.14. The firm has a market capitalization of $5.40 billion, a P/E ratio of 19.04 and a beta of 1.44. UFP Industries has a one year low of $84.82 and a one year high of $118.00.

UFP Industries (NASDAQ:UFPI - Get Free Report) last released its quarterly earnings data on Monday, February 23rd. The construction company reported $0.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.03 by ($0.33). UFP Industries had a net margin of 4.66% and a return on equity of 9.27%. The business had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.40 billion. During the same quarter in the prior year, the company earned $1.12 EPS. UFP Industries's quarterly revenue was down 9.0% on a year-over-year basis. Research analysts predict that UFP Industries will post 5.19 earnings per share for the current year.

Analysts Set New Price Targets

Several equities analysts have recently commented on UFPI shares. DA Davidson decreased their target price on UFP Industries from $112.00 to $110.00 and set a "buy" rating on the stock in a research report on Tuesday, March 10th. Zacks Research downgraded UFP Industries from a "hold" rating to a "strong sell" rating in a research report on Tuesday, March 17th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of UFP Industries in a research report on Tuesday, January 27th. Finally, BMO Capital Markets reaffirmed a "market perform" rating and issued a $108.00 target price (down from $112.00) on shares of UFP Industries in a research report on Monday. One analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $107.00.

UFP Industries Company Profile

UFP Industries, Inc, founded in 1955 and headquartered in Grand Rapids, Michigan, designs, manufactures, and distributes a broad range of wood and wood-alternative products. The company operates through two primary segments: UFP Retail Solutions, which supplies building materials and components to home improvement retailers and lumber dealers, and UFP Distribution Solutions, which offers packaging, pallets, skids, and other industrial products for a variety of end markets. Its product portfolio includes treated and untreated lumber, engineered wood, decking, railing, fencing, vinyl sheets and profiles, and custom-designed packaging solutions.

With manufacturing facilities and distribution centers across the United States, Canada, Mexico and Europe, UFP Industries serves professional contractors, industrial customers, and do-it-yourself consumers.

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