Business services provider
Lender Processing Services, Inc.
) recently declared second quarter 2013 dividend of 10 cents per
share or 40 cents on an annualized basis. The dividend is payable
on Jun 13 to shareholders of record as of May 30.
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Based on the closing price of $24.45 on Apr 19, 2013, the
dividend affirms a yield of 1.6%. A steady dividend payout is
part of the long-term strategy of Lender Processing to provide
attractive risk-adjusted returns to its stockholders. The company
also has a share repurchase program in place, under which it can
purchase common stock over a period of time either through the
open market or through negotiated transactions.
Over the years, Lender Processing has consistently returned
significant cash to its shareholders through dividends and share
repurchases. Lender Processing expects to fund the share
repurchases through available cash. At year-end 2012, cash and
cash equivalents of the company aggregated $236.2 million. The
company also expects to generate significant cash flow to further
repurchase shares and maintain its steady dividend payout. Net
cash provided by operating activities in the last reported
quarter stood at $434.5 million.
Headquartered in Jacksonville, FL, Lender Processing provides
integrated technology and outsourced services to the mortgage
lending industry. The company's products and services span the
entire life cycle of a mortgage, from origination to servicing to
Moving forward, Lender Processing is well positioned to enhance
the mortgage value chain and deliver innovative technology, data
and expertise to its clients. The rapidly growing mortgage
landscape continues to create new requirements for its clients.
Also, the recent conclusions of many of the company's legal
matters allow it to focus more on growth and innovation to create
new opportunities for the company.
However, the company needs to be wary of intense competition from
industry bigwigs, which include formidable names such as
Alliance Data Systems Corporation
), each carrying a Zacks Rank #2 (Buy). However, Lender
Processing currently has a Zacks Rank #4 (Sell).