United Rentals, Inc. (NYSE:URI) Announces $1.97 Quarterly Dividend

Key Points

• United Rentals announced a quarterly dividend of $1.97 per share, with stockholders of record on August 12 set to be paid on August 26. The dividend implies an annualized yield of about 0.8%.
• The company’s dividend appears well covered, with a payout ratio of 16.6% and analysts expecting earnings strong enough to support future payments.
• United Rentals recently beat quarterly earnings and revenue estimates, reporting $12.76 EPS on $4.41 billion in revenue, while analysts remain generally bullish with an average rating of “Moderate Buy” and a $1,140 price target.

United Rentals, Inc. (NYSE:URI - Get Free Report) announced a quarterly dividend on Wednesday, July 22nd. Stockholders of record on Wednesday, August 12th will be given a dividend of 1.97 per share by the construction company on Wednesday, August 26th. This represents a c) dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Wednesday, August 12th.

United Rentals has a payout ratio of 16.6% indicating that its dividend is sufficiently covered by earnings. Research analysts expect United Rentals to earn $53.16 per share next year, which means the company should continue to be able to cover its $7.88 annual dividend with an expected future payout ratio of 14.8%.

United Rentals Stock Performance

Shares of NYSE:URI opened at $1,034.28 on Thursday. The business has a 50-day moving average of $1,045.86 and a two-hundred day moving average of $915.44. The firm has a market capitalization of $64.80 billion, a PE ratio of 26.38, a P/E/G ratio of 1.62 and a beta of 1.79. United Rentals has a 12 month low of $701.59 and a 12 month high of $1,143.69. The company has a debt-to-equity ratio of 1.37, a current ratio of 0.80 and a quick ratio of 0.74.

United Rentals (NYSE:URI - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The construction company reported $12.76 EPS for the quarter, beating the consensus estimate of $11.53 by $1.23. United Rentals had a net margin of 15.32% and a return on equity of 30.56%. The firm had revenue of $4.41 billion for the quarter, compared to analyst estimates of $4.22 billion. During the same quarter last year, the firm posted $10.47 earnings per share. United Rentals's revenue for the quarter was up 11.8% compared to the same quarter last year. As a group, research analysts forecast that United Rentals will post 46.85 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the company. Weiss Ratings downgraded United Rentals from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, July 9th. Morgan Stanley increased their price target on United Rentals from $1,030.00 to $1,165.00 and gave the company an "overweight" rating in a report on Friday, July 17th. Bank of America lifted their price objective on United Rentals from $1,020.00 to $1,195.00 and gave the stock a "buy" rating in a report on Thursday, June 25th. JPMorgan Chase & Co. upped their price target on shares of United Rentals from $1,050.00 to $1,100.00 and gave the company an "overweight" rating in a report on Monday, July 13th. Finally, Barclays upped their price objective on United Rentals from $600.00 to $715.00 and gave the company an "underweight" rating in a research note on Friday, April 24th. Fourteen equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $1,140.00.

United Rentals Company Profile

United Rentals, Inc NYSE: URI is a leading equipment rental company headquartered in Stamford, Connecticut. The firm provides rental solutions and related services to construction, industrial, commercial, and municipal customers. Its business model centers on providing access to a broad fleet of equipment on a short-term or long-term basis, enabling customers to avoid the capital expenditure of ownership and to scale equipment use to match project needs.

The company's product and service offerings span general construction equipment and a range of specialty categories, including aerial work platforms, earthmoving and excavation machines, material handling equipment, pumps, power and HVAC systems, trench and shoring solutions, and tools.

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