NEW YORK - Regional Management (NYSE:RM) Corp. has announced an upcoming ex-dividend date, alerting shareholders to the nearing opportunity to receive a dividend payment of $0.30 per share. The announcement, made today, precedes the ex-dividend date set for Monday, November 20, 2023, after which new shareholders will not be eligible for the declared dividend.
Investors holding shares before November 21 will be entitled to the dividend, with the stock currently yielding around 5.4%. This yield reflects the company's consistent performance and commitment to shareholder returns, as evidenced by last year's total dividend payments amounting to $1.20 per share. The payout ratio for these dividends remained sustainable at 43%, showcasing the company's balanced approach to distributing profits and retaining earnings for growth.
Regional Management has a commendable track record of stable earnings over the past five years and has managed to increase its annual dividend by an average of 14% over the last three years. This growth-oriented strategy is further supported by the company's reinvestment of over half of its profits into growth projects, signaling ongoing expansion efforts.
Eligible shareholders can expect to receive their dividends on Wednesday, December 13, 2023.
InvestingPro Insights
In light of the latest market data and insights from InvestingPro, it appears that Regional Management Corp .'s commitment to shareholder returns is reflected in its high earnings quality, with free cash flow exceeding net income (InvestingPro Tip #0). This strong financial position should allow the company to continue its dividend payments (InvestingPro Tip #1). It's worth noting that the company has a track record of raising its dividend for three consecutive years (InvestingPro Tip #2), a trend that aligns with its current dividend yield of 5.4% (InvestingPro Data).
However, potential investors should be aware of the company's declining trend in earnings per share (InvestingPro Tip #3) and the fact that three analysts have revised their earnings downwards for the upcoming period (InvestingPro Tip #4). Additionally, the company's stock price has fallen significantly over the last three months (InvestingPro Tip #10).
As of Q3 2023, Regional Management Corp. had a market cap of 227.97M USD and a P/E ratio of 8.25 (InvestingPro Data). The company's revenue for the last twelve months as of Q3 2023 was 525.24M USD, reflecting a growth of 8.81% (InvestingPro Data).
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