Zoetis (ZTS) Declares $0.38 Dividend

Zoetis said on February 8, 2023 that its board of directors declared a regular quarterly dividend of $0.38 per share ($1.50 annualized). Shareholders of record as of April 20, 2023 will receive the payment on June 1, 2023. Previously, the company paid $0.38 per share.

At the current share price of $160.81 / share, the stock's dividend yield is 0.93%. Looking back five years and taking a sample every week, the average dividend yield has been 0.62%, the lowest has been 0.45%, and the highest has been 1.05%. The standard deviation of yields is 0.12 (n=237).

The current dividend yield is 2.69 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.34. 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 0.87%, demonstrating that it has increased its dividend over time.

Analyst Price Forecast Suggests 34.33% Upside

As of February 10, 2023, the average one-year price target for Zoetis is $216.02. The forecasts range from a low of $181.80 to a high of $262.50. The average price target represents an increase of 34.33% from its latest reported closing price of $160.81.

The projected annual revenue for Zoetis is $8,702MM, an increase of 8.68%. The projected annual EPS is $5.45, an increase of 24.20%.

What is the Fund Sentiment?

There are 2571 funds or institutions reporting positions in Zoetis. This is a decrease of 61 owner(s) or 2.32% in the last quarter. Average portfolio weight of all funds dedicated to ZTS is 0.47%, a decrease of 6.52%. Total shares owned by institutions increased in the last three months by 0.43% to 494,975K shares. The put/call ratio of ZTS is 0.49, indicating a bullish outlook.

What are large shareholders doing?

Alliancebernstein holds 19,102K shares representing 4.10% ownership of the company. In it's prior filing, the firm reported owning 18,694K shares, representing an increase of 2.14%. The firm decreased its portfolio allocation in ZTS by 6.56% over the last quarter.

State Farm Mutual Automobile Insurance holds 17,135K shares representing 3.68% ownership of the company. No change in the last quarter.

Bank Of America holds 14,147K shares representing 3.04% ownership of the company. In it's prior filing, the firm reported owning 11,630K shares, representing an increase of 17.79%. The firm decreased its portfolio allocation in ZTS by 70.45% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 12,563K shares representing 2.70% ownership of the company. In it's prior filing, the firm reported owning 12,475K shares, representing an increase of 0.70%. The firm decreased its portfolio allocation in ZTS by 9.44% over the last quarter.

VFINX - Vanguard 500 Index Fund Investor Shares holds 10,612K shares representing 2.28% ownership of the company. In it's prior filing, the firm reported owning 10,418K shares, representing an increase of 1.83%. The firm decreased its portfolio allocation in ZTS by 9.12% over the last quarter.

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

Zoetis is the leading animal health company, dedicated to supporting its customers and their businesses. Building on more than 65 years of experience in animal health, Zoetis discovers, develops, manufactures and commercializes medicines, vaccines and diagnostic products, which are complemented by biodevices, genetic tests and precision livestock farming. Zoetis serves veterinarians, livestock producers and people who raise and care for farm and companion animals with sales of its products in more than 100 countries. In 2019, the company generated annual revenue of $6.3 billion with approximately 10,600 employees.

This story originally appeared on Fintel.