Aaron's (AAN) Declares $0.12 Dividend

Aaron's said on March 1, 2023 that its board of directors declared a regular quarterly dividend of $0.12 per share ($0.50 annualized). Previously, the company paid $0.11 per share.

Shares must be purchased before the ex-div date of March 15, 2023 to qualify for the dividend. Shareholders of record as of March 16, 2023 will receive the payment on April 4, 2023.

At the current share price of $12.37 / share, the stock's dividend yield is 4.04%. Looking back five years and taking a sample every week, the average dividend yield has been 2.27%, the lowest has been 0.77%, and the highest has been 5.57%. The standard deviation of yields is 1.05 (n=110).

The current dividend yield is 1.68 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is -2.91. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.11%, demonstrating that it has increased its dividend over time.

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Analyst Price Forecast Suggests 6.51% Upside

As of March 3, 2023, the average one-year price target for Aaron's is $13.18. The forecasts range from a low of $6.56 to a high of $21.00. The average price target represents an increase of 6.51% from its latest reported closing price of $12.37.

The projected annual revenue for Aaron's is $2,386MM, an increase of 6.07%. The projected annual non-GAAP EPS is $1.70.

What is the Fund Sentiment?

There are 449 funds or institutions reporting positions in Aaron's. This is a decrease of 16 owner(s) or 3.44% in the last quarter. Average portfolio weight of all funds dedicated to AAN is 0.08%, an increase of 31.73%. Total shares owned by institutions decreased in the last three months by 1.76% to 33,210K shares. The put/call ratio of AAN is 0.89, indicating a bullish outlook.

What are large shareholders doing?

IJR - iShares Core S&P Small-Cap ETF holds 2,320K shares representing 7.54% ownership of the company. In it's prior filing, the firm reported owning 2,252K shares, representing an increase of 2.94%. The firm increased its portfolio allocation in AAN by 15.23% over the last quarter.

Palisade Capital Management holds 1,132K shares representing 3.68% ownership of the company. In it's prior filing, the firm reported owning 968K shares, representing an increase of 14.52%. The firm increased its portfolio allocation in AAN by 36.29% over the last quarter.

Philadelphia Financial Management of San Francisco holds 1,056K shares representing 3.43% ownership of the company.

Solas Capital Management holds 884K shares representing 2.87% ownership of the company. In it's prior filing, the firm reported owning 934K shares, representing a decrease of 5.66%. The firm increased its portfolio allocation in AAN by 14.47% over the last quarter.

Lsv Asset Management holds 861K shares representing 2.80% ownership of the company. In it's prior filing, the firm reported owning 862K shares, representing a decrease of 0.09%. The firm increased its portfolio allocation in AAN by 15.30% over the last quarter.

Aarons Company Inc Background Information
(This description is provided by the company.)

Headquartered in Atlanta, The Aaron's Company, Inc. is a leading technology-enabled omnichannel provider of lease-purchase solutions. Aaron's engages in the sales and lease ownership and specialty retailing of furniture, consumer electronics, appliances and accessories through its approximately 1,300 Company-operated and franchised stores in 47 states and Canada, as well as its e-commerce platform, Aarons.com.

This story originally appeared on Fintel.