Aramark (ARMK) Declares $0.11 Dividend

Aramark said on May 3, 2023 that its board of directors declared a regular quarterly dividend of $0.11 per share ($0.44 annualized). Previously, the company paid $0.11 per share.

Shares must be purchased before the ex-div date of May 16, 2023 to qualify for the dividend. Shareholders of record as of May 17, 2023 will receive the payment on May 31, 2023.

At the current share price of $33.71 / share, the stock's dividend yield is 1.31%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.28%, the lowest has been 0.97%, and the highest has been 2.59%. The standard deviation of yields is 0.27 (n=237).

The current dividend yield is 0.08 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.51. 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 has not increased its dividend in the last three years.

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What is the Fund Sentiment?

There are 711 funds or institutions reporting positions in Aramark. This is an increase of 40 owner(s) or 5.96% in the last quarter. Average portfolio weight of all funds dedicated to ARMK is 0.31%, an increase of 20.13%. Total shares owned by institutions increased in the last three months by 6.91% to 359,978K shares. The put/call ratio of ARMK is 0.84, indicating a bullish outlook.

Analyst Price Forecast Suggests 33.12% Upside

As of April 24, 2023, the average one-year price target for Aramark is 44.87. The forecasts range from a low of 36.36 to a high of $57.75. The average price target represents an increase of 33.12% from its latest reported closing price of 33.71.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Aramark is 18,524MM, an increase of 9.10%. The projected annual non-GAAP EPS is 1.94.

What are Other Shareholders Doing?

Capital International Investors holds 26,239K shares representing 10.07% ownership of the company. In it's prior filing, the firm reported owning 19,859K shares, representing an increase of 24.32%. The firm increased its portfolio allocation in ARMK by 61.11% over the last quarter.

Nomura Holdings holds 18,786K shares representing 7.21% ownership of the company. In it's prior filing, the firm reported owning 17,979K shares, representing an increase of 4.30%. The firm increased its portfolio allocation in ARMK by 38.38% over the last quarter.

Royal Bank Of Canada holds 16,504K shares representing 6.34% ownership of the company. In it's prior filing, the firm reported owning 18,042K shares, representing a decrease of 9.32%. The firm increased its portfolio allocation in ARMK by 10.42% over the last quarter.

Atlanta Capital Management Co L L C holds 13,504K shares representing 5.18% ownership of the company. In it's prior filing, the firm reported owning 15,570K shares, representing a decrease of 15.30%. The firm decreased its portfolio allocation in ARMK by 8.65% over the last quarter.

Barrow Hanley Mewhinney & Strauss holds 11,921K shares representing 4.58% ownership of the company. In it's prior filing, the firm reported owning 12,619K shares, representing a decrease of 5.85%. The firm increased its portfolio allocation in ARMK by 14.69% over the last quarter.

Aramark Background Information
(This description is provided by the company.)

Aramark proudly serves the world's leading educational institutions, Fortune 500 companies, world champion sports teams, prominent healthcare providers, iconic destinations and cultural attractions, and numerous municipalities in 19 countries around the world. It delivers innovative experiences and services in food, facilities management and uniforms to millions of people every day. It strives to create a better world by making a positive impact on people and the planet, including commitments to engage our employees; empower healthy consumers; build local communities; source ethically, inclusively and responsibly; operate efficiently and reduce waste. Aramark is recognized as a Best Place to Work by the Human Rights Campaign (LGBTQ+), DiversityInc, Equal Employment Publications and the Disability Equality Index.

This story originally appeared on Fintel.