Dividend Coverage: This Medical Drug Distributor Raised its Dividend by 4%; Will Trade Ex-Dividend on November 17, 2017

LONDON, UK / ACCESSWIRE / November 16, 2017 / Pro-Trader Daily takes a closer look at AmerisourceBergen Corp. (NYSE: ABC) as the Company’s stock will begin trading ex-dividend on November 17, 2017. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on November 16, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:

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Dividend Declared

On November 09, 2017, AmerisourceBergen’s Board of Directors increased the Company’s quarterly dividend rate 4% to $0.38 per common share from $0.365 per common share. The quarterly dividend of $0.38 per common share will be payable December 04, 2017, to stockholders of record at the close of business on November 20, 2017.

AmerisourceBergen’s indicated dividend represents a yield of 2.02%, which is equal to the average dividend yield of 2.02% for the Services sector. The Company has raised dividend for twelve consecutive years.

Dividend Insights

AmerisourceBergen has a dividend payout ratio of 25.2%, which indicates that the Company spends approximately $0.25 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.

According to analysts’ estimates, AmerisourceBergen is forecasted to report earnings of $6.65 for the next year, which is more than four times the Company’s annualized dividend of $1.52 per share.

As on September 30, 2017, AmerisourceBergen’s cash and cash equivalents totaled $2.42 billion compared to $2.74 billion as on September 30, 2016. For the twelve months ended September 30, 2017, the Company’s net cash provided by operating activities totaled $1.49 billion compared to $3.18 billion for the year ago same period. The Company’s strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.

Recent Development for AmerisourceBergen

On November 02, 2017, AmerisourceBergen reported that its fiscal year 2017 fourth quarter ended September 30, 2017, revenue increased 4.2% to $39.1 billion on y-o-y basis, while it grew 4.3% to $153.1 billion for the fiscal year 2017.

On a GAAP basis, the Company’s diluted earnings per share (EPS) was negative $1.35 for Q4 FY17 compared to $0.64 in Q4 FY16. AmerisourceBergen GAAP diluted EPS for FY17 was $1.87 compared to $6.32 in FY16. The Company’s GAAP EPS for the reported quarter and fiscal year was unfavorably impacted by litigation expenses. AmerisourceBergen’s adjusted diluted EPS increased 2.3% to $1.33 on a y-o-y basis in Q4 FY17, while for FY17 adjusted diluted EPS advanced 4.6% to $5.88.

About AmerisourceBergen

AmerisourceBergen provides pharmaceutical products, value-driving services, and business solutions that improve access to care. AmerisourceBergen is ranked #11 on the Fortune 500 with more than $150 billion in annual revenue. The Company is headquartered in Valley Forge, Pennsylvania and has a presence in 50+ countries.

Stock Performance

At the close of trading session on Wednesday, November 15, 2017, AmerisourceBergen’s stock price rose 2.82% to end the day at $77.53. A total volume of 2.66 million shares were exchanged during the session, which was above the 3-month average volume of 1.85 million shares. The Company’s shares are trading at a PE ratio of 41.84 and have a dividend yield of 1.88%. At Wednesday’s closing price, the stock’s net capitalization stands at $17.05 billion.

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