Royalty Pharma (RPRX) Declares $0.20 Dividend

Royalty Pharma said on April 17, 2023 that its board of directors declared a regular quarterly dividend of $0.20 per share ($0.80 annualized). Previously, the company paid $0.20 per share.

Shares must be purchased before the ex-div date of May 18, 2023 to qualify for the dividend. Shareholders of record as of May 19, 2023 will receive the payment on June 15, 2023.

At the current share price of $35.90 / share, the stock's dividend yield is 2.23%. Looking back five years and taking a sample every week, the average dividend yield has been 1.75%, the lowest has been 1.22%, and the highest has been 2.44%. The standard deviation of yields is 0.23 (n=127).

The current dividend yield is 2.08 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 8.24. 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 0.05%, demonstrating that it has increased its dividend over time.

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What is the Fund Sentiment?

There are 746 funds or institutions reporting positions in Royalty Pharma. This is an increase of 21 owner(s) or 2.90% in the last quarter. Average portfolio weight of all funds dedicated to RPRX is 0.67%, an increase of 5.13%. Total shares owned by institutions decreased in the last three months by 0.46% to 343,926K shares. The put/call ratio of RPRX is 0.19, indicating a bullish outlook.

Analyst Price Forecast Suggests 50.53% Upside

As of April 6, 2023, the average one-year price target for Royalty Pharma is $54.04. The forecasts range from a low of $47.47 to a high of $63.00. The average price target represents an increase of 50.53% from its latest reported closing price of $35.90.

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

The projected annual revenue for Royalty Pharma is $2,624MM, an increase of 17.30%. The projected annual non-GAAP EPS is $3.66.

What are Other Shareholders Doing?

ETADX - Eventide Dividend Opportunities Fund Shares holds 310K shares representing 0.07% ownership of the company.

BBVSX - Bridge Builder Small holds 11K shares representing 0.00% ownership of the company. In it's prior filing, the firm reported owning 11K shares, representing an increase of 4.16%. The firm decreased its portfolio allocation in RPRX by 1.85% over the last quarter.

Overbrook Management holds 609K shares representing 0.14% ownership of the company. In it's prior filing, the firm reported owning 629K shares, representing a decrease of 3.21%. The firm decreased its portfolio allocation in RPRX by 99.90% over the last quarter.

DFA INVESTMENT DIMENSIONS GROUP INC - U.S. Social Core Equity 2 Portfolio Shares holds 14K shares representing 0.00% ownership of the company. No change in the last quarter.

FCFMX - Fidelity Series Total Market Index Fund holds 430K shares representing 0.10% ownership of the company. In it's prior filing, the firm reported owning 418K shares, representing an increase of 2.88%. The firm increased its portfolio allocation in RPRX by 4.27% over the last quarter.

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

Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and not-for-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry's leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly - directly when it partners with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma's current portfolio includes royalties on more than 45 commercial products, including AbbVie and J&J's Imbruvica, Astellas and Pfizer's Xtandi, Biogen's Tysabri, Gilead's HIV franchise, Merck's Januvia, Novartis' Promacta, and Vertex's Kalydeco, Orkambi, Symdeko and Trikafta, and five development-stage product candidates.

This story originally appeared on Fintel.