Evertec (EVTC) Declares $0.05 Dividend

Evertec said on July 20, 2023 that its board of directors declared a regular quarterly dividend of $0.05 per share ($0.20 annualized). Previously, the company paid $0.05 per share.

Shareholders of record as of July 31, 2023 will receive the payment on September 1, 2023.

At the current share price of $39.82 / share, the stock's dividend yield is 0.50%.

Looking back five years and taking a sample every week, the average dividend yield has been 0.60%, the lowest has been 0.40%, and the highest has been 1.06%. The standard deviation of yields is 0.12 (n=235).

The current dividend yield is 0.82 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.06. 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.

What is the Fund Sentiment?

There are 559 funds or institutions reporting positions in Evertec. This is an increase of 3 owner(s) or 0.54% in the last quarter. Average portfolio weight of all funds dedicated to EVTC is 0.25%, an increase of 4.27%. Total shares owned by institutions decreased in the last three months by 0.41% to 77,946K shares. The put/call ratio of EVTC is 0.03, indicating a bullish outlook.

Analyst Price Forecast Suggests 7.27% Downside

As of July 6, 2023, the average one-year price target for Evertec is 36.92. The forecasts range from a low of 29.29 to a high of $45.15. The average price target represents a decrease of 7.27% from its latest reported closing price of 39.82.

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

The projected annual revenue for Evertec is 649MM, an increase of 2.33%. The projected annual non-GAAP EPS is 2.62.

What are Other Shareholders Doing?

IJR - iShares Core S&P Small-Cap ETF holds 4,744K shares representing 7.29% ownership of the company. In it's prior filing, the firm reported owning 4,832K shares, representing a decrease of 1.84%. The firm decreased its portfolio allocation in EVTC by 0.55% over the last quarter.

Kayne Anderson Rudnick Investment Management holds 4,555K shares representing 7.00% ownership of the company. In it's prior filing, the firm reported owning 4,467K shares, representing an increase of 1.92%. The firm increased its portfolio allocation in EVTC by 0.16% over the last quarter.

American Century Companies holds 4,051K shares representing 6.23% ownership of the company. In it's prior filing, the firm reported owning 4,260K shares, representing a decrease of 5.16%. The firm decreased its portfolio allocation in EVTC by 4.42% over the last quarter.

ASVIX - Small Cap Value Fund Investor Class holds 3,300K shares representing 5.07% ownership of the company. In it's prior filing, the firm reported owning 3,395K shares, representing a decrease of 2.88%. The firm decreased its portfolio allocation in EVTC by 1.14% over the last quarter.

Capital International Investors holds 3,099K shares representing 4.76% ownership of the company. In it's prior filing, the firm reported owning 3,569K shares, representing a decrease of 15.15%. The firm decreased its portfolio allocation in EVTC by 13.35% over the last quarter.

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

EVERTEC, Inc. is a leading full-service transaction processing business in Puerto Rico, the Caribbean, and Latin America providing a broad range of merchant acquiring, payment processing and business solutions services. The Company manages a system of electronic payment networks that process more than two billion transactions annually and offers a comprehensive suite of services for core bank processing, cash processing and technology outsourcing. In addition, Evertec owns and operates the ATH® network, one of the leading personal identification number (“PIN”) debit networks in Latin America. Based in Puerto Rico, the Company operates in 26 Latin American countries and serves a diversified customer base of leading financial institutions, merchants, corporations and government agencies with “mission-critical” technology solutions.

Additional reading:

• EVERTEC REPORTS SECOND QUARTER 2023 RESULTS Raises annual guidance
• VOTING AGREEMENT AND OTHER COVENANTS
• MERGER AGREEMENT AND OTHER COVENANTS
• EVERTEC TO ACQUIRE SINQIA, A LEADING PROVIDER OF SOFTWARE SOLUTIONS FOR FINANCIAL INSTITUTIONS IN BRAZIL Advances Evertec’s growth strategy, drives geographic diversification, and offers complementary products Significant opportunity to provide Sinqi
• EVERTEC DECLARES QUARTERLY DIVIDEND ON COMMON STOCK

This story originally appeared on Fintel.