Nelnet (NNI) Declares $0.26 Dividend

Nelnet said on February 1, 2023 that its board of directors declared a regular quarterly dividend of $0.26 per share ($1.04 annualized). Shareholders of record as of February 28, 2023 will receive the payment on March 15, 2023. Previously, the company paid $0.24 per share.

At the current share price of $96.44 / share, the stock's dividend yield is 1.08%. Looking back five years and taking a sample every week, the average dividend yield has been 1.23%, the lowest has been 0.98%, and the highest has been 2.08%. The standard deviation of yields is 0.18 (n=237).

The current dividend yield is 0.84 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.08. 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 0.30%, demonstrating that it has increased its dividend over time.

Analyst Price Forecast Suggests 0.48% Upside

As of February 5, 2023, the average one-year price target for Nelnet is $96.90. The forecasts range from a low of $95.95 to a high of $99.75. The average price target represents an increase of 0.48% from its latest reported closing price of $96.44.

The projected annual revenue for Nelnet is $1,392MM, a decrease of 13.38%. The projected annual EPS is $6.82, a decrease of 49.27%.

Fund Sentiment

There are 378 funds or institutions reporting positions in Nelnet. This is a decrease of 7 owner(s) or 1.82%.

Average portfolio weight of all funds dedicated to US:NNI is 0.1947%, an increase of 12.2389%. Total shares owned by institutions decreased in the last three months by 0.01% to 13,676K shares.

What are large shareholders doing?

Magnolia Group holds 1,900,000 shares representing 5.12% ownership of the company. No change in the last quarter.

Farmers & Merchants Investments holds 1,369,866 shares representing 3.69% ownership of the company. In it's prior filing, the firm reported owning 1,370,866 shares, representing a decrease of 0.07%. The firm increased its portfolio allocation in NNI by 4.42% over the last quarter.

DFSVX - U.s. Small Cap Value Portfolio - Institutional Class holds 731,282 shares representing 1.97% ownership of the company. No change in the last quarter.

Empyrean Capital Partners holds 480,073 shares representing 1.29% ownership of the company. In it's prior filing, the firm reported owning 505,073 shares, representing a decrease of 5.21%. The firm decreased its portfolio allocation in NNI by 13.66% over the last quarter.

IWM - iShares Russell 2000 ETF holds 316,710 shares representing 0.85% ownership of the company. In it's prior filing, the firm reported owning 335,696 shares, representing a decrease of 5.99%. The firm decreased its portfolio allocation in NNI by 5.09% over the last quarter.

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

Nelnet is a diversified and innovative company focused on offering educational services, technology solutions, telecommunications, and asset management. Nelnet helps students and families plan and pay for their education and makes the administrative processes for schools more efficient with student loan servicing, tuition payment processing, and school administration software. Through its investment in ALLO Communications, Nelnet offers fiber optic services directly to homes and businesses for ultra-fast internet and superior telephone and television services. The company also makes investments in real estate and early-stage and emerging growth companies.

This story originally appeared on Fintel.