Chemed Co. (NYSE:CHE) to Issue Dividend Increase – $0.50 Per Share

Chemed Co. (NYSE:CHE) declared a quarterly dividend on Friday, August 2nd, Wall Street Journal reports. Shareholders of record on Monday, August 12th will be paid a dividend of 0.50 per share on Friday, August 30th. This represents a $2.00 dividend on an annualized basis and a dividend yield of 0.34%. The ex-dividend date of this dividend is Monday, August 12th. This is a boost from Chemed’s previous quarterly dividend of $0.40.

Chemed has increased its dividend payment by an average of 5.7% per year over the last three years and has raised its dividend every year for the last 16 years. Chemed has a dividend payout ratio of 7.9% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Chemed to earn $23.68 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 8.4%.

Chemed Stock Down 0.6 %

CHE stock traded down $3.32 during midday trading on Friday, reaching $580.06. The stock had a trading volume of 85,088 shares, compared to its average volume of 88,620. The business has a fifty day simple moving average of $547.46 and a two-hundred day simple moving average of $582.23. The firm has a market cap of $8.78 billion, a price-to-earnings ratio of 31.20, a PEG ratio of 2.40 and a beta of 0.43. Chemed has a twelve month low of $492.84 and a twelve month high of $654.62.

Chemed (NYSE:CHE) last issued its earnings results on Wednesday, July 24th. The company reported $5.47 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $5.59 by ($0.12). Chemed had a return on equity of 29.21% and a net margin of 12.88%. The company had revenue of $595.88 million for the quarter, compared to the consensus estimate of $599.20 million. During the same quarter last year, the business posted $4.71 EPS. Chemed’s quarterly revenue was up 7.6% on a year-over-year basis. On average, equities analysts predict that Chemed will post 21.77 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the company. Royal Bank of Canada cut their target price on Chemed from $712.00 to $697.00 and set an “outperform” rating on the stock in a research note on Tuesday, May 21st. StockNews.com raised Chemed from a “hold” rating to a “buy” rating in a research report on Saturday, May 4th.

Insider Buying and Selling at Chemed

In other news, CEO Kevin J. Mcnamara sold 2,000 shares of the business’s stock in a transaction that occurred on Monday, August 5th. The stock was sold at an average price of $569.63, for a total transaction of $1,139,260.00. Following the completion of the sale, the chief executive officer now owns 105,735 shares in the company, valued at $60,229,828.05. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. In other news, Director Patrick P. Grace sold 284 shares of the company’s stock in a transaction dated Wednesday, June 12th. The stock was sold at an average price of $540.98, for a total value of $153,638.32. Following the completion of the transaction, the director now directly owns 3,270 shares in the company, valued at approximately $1,769,004.60. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Kevin J. Mcnamara sold 2,000 shares of the stock in a transaction that occurred on Monday, August 5th. The stock was sold at an average price of $569.63, for a total value of $1,139,260.00. Following the completion of the sale, the chief executive officer now owns 105,735 shares of the company’s stock, valued at approximately $60,229,828.05. The disclosure for this sale can be found here. Over the last three months, insiders sold 9,784 shares of company stock worth $5,502,473. 3.32% of the stock is currently owned by insiders.

Chemed Company Profile

Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers primarily in the United States. The company operates in VITAS and Roto-Rooter segments. It offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees.