Iridium Communications (IRDM) Declares $0.13 Dividend

Iridium Communications said on May 8, 2023 that its board of directors declared a regular quarterly dividend of $0.13 per share ($0.52 annualized). Previously, the company paid $0.13 per share.

Shares must be purchased before the ex-div date of June 14, 2023 to qualify for the dividend. Shareholders of record as of June 15, 2023 will receive the payment on June 30, 2023.

At the current share price of $63.16 / share, the stock's dividend yield is 0.82%.

Looking back five years and taking a sample every week, the average dividend yield has been 1.78%, the lowest has been 0.78%, and the highest has been 4.46%. The standard deviation of yields is 0.66 (n=237).

The current dividend yield is 1.46 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 4.18. 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 763 funds or institutions reporting positions in Iridium Communications. This is an increase of 38 owner(s) or 5.24% in the last quarter. Average portfolio weight of all funds dedicated to IRDM is 0.36%, an increase of 5.85%. Total shares owned by institutions increased in the last three months by 2.75% to 140,129K shares. The put/call ratio of IRDM is 0.74, indicating a bullish outlook.

Analyst Price Forecast Suggests 5.78% Upside

As of April 24, 2023, the average one-year price target for Iridium Communications is 66.81. The forecasts range from a low of 45.45 to a high of $79.80. The average price target represents an increase of 5.78% from its latest reported closing price of 63.16.

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

The projected annual revenue for Iridium Communications is 768MM, an increase of 1.37%. The projected annual non-GAAP EPS is 0.18.

What are Other Shareholders Doing?

Bamco holds 14,511K shares representing 11.52% ownership of the company. In it's prior filing, the firm reported owning 14,522K shares, representing a decrease of 0.07%. The firm increased its portfolio allocation in IRDM by 20.32% over the last quarter.

BGRFX - BARON GROWTH FUND holds 7,890K shares representing 6.27% ownership of the company. In it's prior filing, the firm reported owning 7,900K shares, representing a decrease of 0.13%. The firm increased its portfolio allocation in IRDM by 5.60% over the last quarter.

Capital International Investors holds 7,872K shares representing 6.25% ownership of the company. In it's prior filing, the firm reported owning 7,871K shares, representing an increase of 0.01%. The firm increased its portfolio allocation in IRDM by 6.62% over the last quarter.

SMCWX - SMALLCAP WORLD FUND INC holds 4,845K shares representing 3.85% ownership of the company. In it's prior filing, the firm reported owning 636K shares, representing an increase of 86.87%. The firm increased its portfolio allocation in IRDM by 661.65% over the last quarter.

BPTRX - Baron Partners Fund holds 4,000K shares representing 3.18% ownership of the company. No change in the last quarter.

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

Iridium® is the only mobile voice and data satellite communications network that spans the entire globe. Iridium enables connections between people, organizations and assets to and from anywhere, in real time. Together with its ecosystem of partner companies, Iridium delivers an innovative and rich portfolio of reliable solutions for markets that require truly global communications. In 2019, the company completed a generational upgrade of its satellite network and launched its new specialty broadband service, Iridium Certus. Iridium Communications Inc. is headquartered in McLean, Va., U.S.A.

This story originally appeared on Fintel.