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Patterson (PDCO) Rewards Shareholders with 8% Dividend Hike
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Patterson Companies Inc. (PDCO - Free Report) , a leading distributor and seller of dental and animal health products, recently hiked its quarterly dividend by 8% to 26 cents per share from 24 cents.
Stock Performance
Over the past three months, the price performance of Patterson Companies has been encouraging. The stock added 10.38% compared with the Zacks classified Medical – Dental Supplies sub-industry’s gain of only 7.76%. Also, the current level compares favorably with the S&P 500’s return of 4.98% over the same time frame.
On the flipside, the estimate revision trend for the stock lacks luster. The current quarter has seen three estimates move south over the last month, with no movement in the opposite direction. As a result, the Zacks Consensus Estimate for the current quarter dropped roughly 2.9% to 65 cents per share over the same time period. Coming back to the news, the St. Paul, MN-based company’s raised quarterly dividend is payable on Apr 28, 2017, to shareholders of record as of Apr 14, 2017. This increase results in an annual cash dividend of $1.04 per share. The hike also represents Patterson’s seventh consecutive year of increase in its annual dividend rate since the first payout in Mar 2010.
Patterson provides a wide range of consumable supplies, equipment and software, and value-added services to its customers. The company’s wide range of products hedges it from any meaningful sales shortfall during an economic downturn. Further, Patterson offers world-class service to its customers by delivering frequent, small quantity orders rapidly and reliably from its strategically located distribution centers.
Patterson Companies is on an acquisition spree which is opening up its revenue opportunities on the one hand and aggravating integration risks on the other. The company recently announced an extended partnership with American Dental Partners or ADPI. Notably, Patterson Companies has been partnering ADPI for the past 20 years.
Nevertheless, Patterson Companies has compelling fundamentals in terms of revenues, which have been multiplying at a CAGR of 27.3% over the last three years. Additionally, a long-term earnings growth rate of 7.48% instills confidence in the stock.
Inogen has a long-term expected earnings growth rate of 17.05%. Notably, the stock has an impressive one-year return of 77.4%.
Avinger projects sales growth of 30.6% for the current year. Additionally, the company posted a positive earnings surprise of 27% last quarter.
Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock has added 6.08% over the last one year.
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Patterson (PDCO) Rewards Shareholders with 8% Dividend Hike
Patterson Companies Inc. (PDCO - Free Report) , a leading distributor and seller of dental and animal health products, recently hiked its quarterly dividend by 8% to 26 cents per share from 24 cents.
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Stock Performance
Over the past three months, the price performance of Patterson Companies has been encouraging. The stock added 10.38% compared with the Zacks classified Medical – Dental Supplies sub-industry’s gain of only 7.76%. Also, the current level compares favorably with the S&P 500’s return of 4.98% over the same time frame.
On the flipside, the estimate revision trend for the stock lacks luster. The current quarter has seen three estimates move south over the last month, with no movement in the opposite direction. As a result, the Zacks Consensus Estimate for the current quarter dropped roughly 2.9% to 65 cents per share over the same time period.
Coming back to the news, the St. Paul, MN-based company’s raised quarterly dividend is payable on Apr 28, 2017, to shareholders of record as of Apr 14, 2017. This increase results in an annual cash dividend of $1.04 per share. The hike also represents Patterson’s seventh consecutive year of increase in its annual dividend rate since the first payout in Mar 2010.
Patterson provides a wide range of consumable supplies, equipment and software, and value-added services to its customers. The company’s wide range of products hedges it from any meaningful sales shortfall during an economic downturn. Further, Patterson offers world-class service to its customers by delivering frequent, small quantity orders rapidly and reliably from its strategically located distribution centers.
Patterson Companies is on an acquisition spree which is opening up its revenue opportunities on the one hand and aggravating integration risks on the other. The company recently announced an extended partnership with American Dental Partners or ADPI. Notably, Patterson Companies has been partnering ADPI for the past 20 years.
Nevertheless, Patterson Companies has compelling fundamentals in terms of revenues, which have been multiplying at a CAGR of 27.3% over the last three years. Additionally, a long-term earnings growth rate of 7.48% instills confidence in the stock.
Key Picks
Patterson has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include Inogen Inc. (INGN - Free Report) , Avinger, Inc. (AVGR - Free Report) and Fluidigm Corporation . Notably, Inogen sports a Zacks Rank #1 (Strong Buy) while Fluidigm and Avinger carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.05%. Notably, the stock has an impressive one-year return of 77.4%.
Avinger projects sales growth of 30.6% for the current year. Additionally, the company posted a positive earnings surprise of 27% last quarter.
Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock has added 6.08% over the last one year.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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