Richardson Electronics (RELL) Declares $0.06 Dividend

Richardson Electronics said on April 5, 2023 that its board of directors declared a regular quarterly dividend of $0.06 per share ($0.24 annualized). Previously, the company paid $0.06 per share.

Shares must be purchased before the ex-div date of May 4, 2023 to qualify for the dividend. Shareholders of record as of May 5, 2023 will receive the payment on May 24, 2023.

At the current share price of $18.25 / share, the stock's dividend yield is 1.32%. Looking back five years and taking a sample every week, the average dividend yield has been 3.33%, the lowest has been 0.94%, and the highest has been 7.25%. The standard deviation of yields is 1.49 (n=237).

The current dividend yield is 1.35 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is 0.13. 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 158 funds or institutions reporting positions in Richardson Electronics. This is an increase of 23 owner(s) or 17.04% in the last quarter. Average portfolio weight of all funds dedicated to RELL is 0.20%, a decrease of 3.07%. Total shares owned by institutions increased in the last three months by 9.02% to 10,045K shares. The put/call ratio of RELL is 0.51, indicating a bullish outlook.

Analyst Price Forecast Suggests 45.32% Upside

As of April 6, 2023, the average one-year price target for Richardson Electronics is $26.52. The forecasts range from a low of $26.26 to a high of $27.30. The average price target represents an increase of 45.32% from its latest reported closing price of $18.25.

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

The projected annual revenue for Richardson Electronics is $265MM, a decrease of 0.10%. The projected annual non-GAAP EPS is $1.34.

What are Other Shareholders Doing?

Advisor Group Holdings holds 15K shares representing 0.11% ownership of the company. In it's prior filing, the firm reported owning 7K shares, representing an increase of 52.35%. The firm decreased its portfolio allocation in RELL by 60.83% over the last quarter.

FOCSX - Fidelity Small Cap Growth K6 Fund holds 110K shares representing 0.78% ownership of the company. In it's prior filing, the firm reported owning 82K shares, representing an increase of 25.85%. The firm increased its portfolio allocation in RELL by 10.46% over the last quarter.

IWC - iShares Micro-Cap ETF holds 19K shares representing 0.14% ownership of the company. In it's prior filing, the firm reported owning 23K shares, representing a decrease of 21.48%. The firm increased its portfolio allocation in RELL by 8.83% over the last quarter.

Dynamic Technology Lab Private holds 21K shares representing 0.15% ownership of the company.

Royce & Associates holds 719K shares representing 5.11% ownership of the company. In it's prior filing, the firm reported owning 977K shares, representing a decrease of 35.88%. The firm decreased its portfolio allocation in RELL by 3.92% over the last quarter.

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

Richardson Electronics, Ltd. is a leading global provider of engineered solutions, power grid and microwave tubes and related consumables; high value displays, flat panel solutions and replacement parts for diagnostic imaging equipment; and customized display solutions. It serves customers in the alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific and semiconductor markets. The Company's strategy is to provide specialized technical expertise and 'engineered solutions' based on its core engineering and manufacturing capabilities. The Company provides solutions and adds value through design-in support, systems integration, prototype design and manufacturing, testing, logistics, and aftermarket technical service and repair through its global infrastructure.

This story originally appeared on Fintel.