UniFirst Corporation (NYSE:UNF) to Issue Quarterly Dividend of $0.36

Key Points

• UniFirst declared a quarterly dividend of $0.365 per share, payable on September 25 to shareholders of record on September 4. The stock’s dividend yield is about 0.5%.
• The company has raised its dividend for 7 straight years and has kept its payout ratio low at 16.9%, suggesting the dividend is well covered by earnings. Analysts expect continued coverage next year as well.
• UniFirst recently reported Q earnings of $1.09 per share, missing estimates, even though revenue rose 3.9% year over year to $634.4 million. The stock was trading up slightly and has a market value of about $4.94 billion.

UniFirst Corporation (NYSE:UNF - Get Free Report) declared a quarterly dividend on Monday, July 13th. Stockholders of record on Friday, September 4th will be paid a dividend of 0.365 per share by the textile maker on Friday, September 25th. This represents a c) dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Friday, September 4th.

UniFirst has increased its dividend by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 7 consecutive years. UniFirst has a dividend payout ratio of 16.9% meaning its dividend is sufficiently covered by earnings. Analysts expect UniFirst to earn $8.13 per share next year, which means the company should continue to be able to cover its $1.46 annual dividend with an expected future payout ratio of 18.0%.

UniFirst Trading Up 0.6%

UNF opened at $273.29 on Tuesday. The business has a 50 day moving average of $264.77 and a 200-day moving average of $245.28. The stock has a market capitalization of $4.94 billion, a price-to-earnings ratio of 43.11 and a beta of 0.63. UniFirst has a 1-year low of $147.66 and a 1-year high of $283.77.

UniFirst (NYSE:UNF - Get Free Report) last announced its earnings results on Wednesday, July 1st. The textile maker reported $1.09 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.93 by ($0.84). The company had revenue of $634.40 million for the quarter, compared to the consensus estimate of $627.66 million. UniFirst had a return on equity of 6.44% and a net margin of 4.65%.The company's revenue was up 3.9% compared to the same quarter last year. During the same period last year, the firm posted $2.13 EPS. Equities analysts predict that UniFirst will post 7.49 EPS for the current year.

Institutional Trading of UniFirst

Several institutional investors have recently made changes to their positions in the business. River Road Asset Management LLC grew its position in UniFirst by 9.6% in the fourth quarter. River Road Asset Management LLC now owns 865,014 shares of the textile maker's stock valued at $166,861,000 after acquiring an additional 75,524 shares during the period. Dimensional Fund Advisors LP boosted its stake in shares of UniFirst by 1.9% in the 4th quarter. Dimensional Fund Advisors LP now owns 787,418 shares of the textile maker's stock valued at $151,895,000 after purchasing an additional 14,751 shares in the last quarter. Engine Capital Management LP increased its position in shares of UniFirst by 640.5% during the 4th quarter. Engine Capital Management LP now owns 459,871 shares of the textile maker's stock worth $88,709,000 after purchasing an additional 397,772 shares in the last quarter. First Trust Advisors LP lifted its holdings in UniFirst by 46.8% during the 4th quarter. First Trust Advisors LP now owns 451,194 shares of the textile maker's stock valued at $87,035,000 after purchasing an additional 143,853 shares during the last quarter. Finally, Brandes Investment Partners LP lifted its holdings in UniFirst by 164.2% during the 4th quarter. Brandes Investment Partners LP now owns 367,786 shares of the textile maker's stock valued at $70,946,000 after purchasing an additional 228,586 shares during the last quarter. 78.17% of the stock is currently owned by institutional investors and hedge funds.

UniFirst Company Profile

UniFirst Corporation NYSE: UNF is a leading provider of customized uniform rental and facility service programs in North America and Europe. The company specializes in the rental, laundering and maintenance of workwear, corporate apparel and protective garments for a broad range of industries, including manufacturing, automotive, hospitality, healthcare and food processing. UniFirst also offers a suite of facility service products such as entrance mats, restroom supplies, wipers, mops and hygienic services designed to help customers maintain clean and safe environments.

In addition to its core uniform rental business, UniFirst has expanded its product portfolio to include safety and first-responder gear, flame-resistant clothing, high-visibility apparel and personal protective equipment (PPE).

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