Deluxe (DLX) Declares $0.30 Dividend

Deluxe said on February 2, 2023 that its board of directors declared a regular quarterly dividend of $0.30 per share ($1.20 annualized). Shareholders of record as of February 17, 2023 will receive the payment on March 6, 2023. Previously, the company paid $0.30 per share.

At the current share price of $20.43 / share, the stock's dividend yield is 5.87%. Looking back five years and taking a sample every week, the average dividend yield has been 3.53%, the lowest has been 1.60%, and the highest has been 7.46%. The standard deviation of yields is 1.40 (n=236).

The current dividend yield is 1.67 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.79. 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.

Analyst Price Forecast Suggests 42.29% Upside

As of February 4, 2023, the average one-year price target for Deluxe is $29.07. The forecasts range from a low of $25.25 to a high of $33.60. The average price target represents an increase of 42.29% from its latest reported closing price of $20.43.

The projected annual revenue for Deluxe is $2,287MM, an increase of 2.19%. The projected annual EPS is $4.01, an increase of 186.19%.

Fund Sentiment

There are 451 funds or institutions reporting positions in Deluxe. This is a decrease of 30 owner(s) or 6.24%.

Average portfolio weight of all funds dedicated to US:DLX is 0.0798%, a decrease of 15.9740%. Total shares owned by institutions decreased in the last three months by 5.50% to 44,198K shares.

What are large shareholders doing?

IJR - iShares Core S&P Small-Cap ETF holds 3,156,338 shares representing 7.32% ownership of the company. In it's prior filing, the firm reported owning 3,006,301 shares, representing an increase of 4.75%. The firm decreased its portfolio allocation in DLX by 18.13% over the last quarter.

American Century Companies holds 2,804,235 shares representing 6.50% ownership of the company. In it's prior filing, the firm reported owning 2,747,976 shares, representing an increase of 2.01%. The firm decreased its portfolio allocation in DLX by 15.64% over the last quarter.

ASVIX - Small Cap Value Fund Investor Class holds 2,280,000 shares representing 5.29% ownership of the company. In it's prior filing, the firm reported owning 2,240,000 shares, representing an increase of 1.75%. The firm decreased its portfolio allocation in DLX by 16.10% over the last quarter.

Lsv Asset Management holds 2,058,282 shares representing 4.77% ownership of the company. In it's prior filing, the firm reported owning 2,069,373 shares, representing a decrease of 0.54%. The firm decreased its portfolio allocation in DLX by 16.97% over the last quarter.

Deprince Race & Zollo holds 1,982,203 shares representing 4.60% ownership of the company. In it's prior filing, the firm reported owning 2,046,451 shares, representing a decrease of 3.24%. The firm decreased its portfolio allocation in DLX by 17.76% over the last quarter.

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

Deluxe Corporation, a Trusted Business Technology™ company, champions business so communities thrive. Its solutions help businesses pay and get paid, accelerate growth and operate more efficiently. For more than 100 years, Deluxe customers have relied on its solutions and platforms at all stages of their lifecycle, from start-up to maturity. Its powerful scale supports millions of small businesses, thousands of vital financial institutions and hundreds of the world's largest consumer brands, while processing more than $2.8 trillion in annual payment volume. Its reach, scale and distribution channels position Deluxe to be its customers' most trusted business partner.

This story originally appeared on Fintel.