Patterson Companies to announce dividend increase

What's Happening With PDCO View more about PDCO >

Patterson Companies has a modest eight-year streak of dividend increases that it is likely to extend when it announces its next distribution this week. The stock took a big hit at the start of March following a disappointing quarterly report, and shares are currently down 33.8% on the year.

Technical Analysis

PDCO was recently trading at $25.07, down $23.22 from its 12-month high and $2.50 above its 12-month low. Overall technical indicators for PDCO are bearish with a strong downward trend. The stock has recent support above $22.50 and recent resistance below $25.75. Of the 16 analysts who cover the stock, two rate it a “strong buy”, eight rate it a “hold”, two rate it a “sell”, and four rate it a “strong sell”. PDCO gets a score of 20 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Patterson has a modest, yet noteworthy eight-year streak of dividend increases. With a payout ratio of 61.5%, investors should not expect to see a huge increase to the quarterly distribution, but something in-line with last year’s 8.3% increase. Not only did the company post a negative earnings surprise at the start of March for its fiscal third-quarter, it also issued full year guidance that was well below what analysts had previously forecast. The double whammy sent shares lower, and the stock is now trading just pennies above its 52-week low. With so much recent negativity in the stock, it is very unlikely that management will decide to break its short streak of dividend increase and bring even more bearish sentiment to the stock. Look for a similar increase to last year’s with the quarterly distribution rising from $0.26 to around $0.28, translating to a 7.7% rise.

PDCO
About Patterson Companies Inc.

Patterson is one of the largest distributors and wholesalers of dental and animal health products, equipment, and devices in the United States. The firm offers dental practice management products, including office software products, technical, financial, and educational services, to thousands of dental practices throughout North America. It also is a major supplier of animal health products to vets and production companies in the United Kingdom.

  • Last Price:
    $17.64
  • Previous Close:
    $17.49
  • Change:
    $0.15 (0.86%)
  • Open:
    $17.45
  • Volume:
    1,519,288
  • Average Volume (100 Day):
    1,103,592
  • Market Capitalization:
    $1.7 B
  • Day's Range:
    $17.45 - $17.78
  • Dividend Yield:
    5.95%
  • 52-week Range:
    $27 - $15.73
  • P-E:
    18.50
  • EPS:
    $0.88
  • Earnings Date:
    12/5/19
  • Ex Dividend Date:
    10/10/19
  • Sector:
    Healthcare
  • Industry:
    Medical Distribution
  • Analyst Average Recommendation:
    Hold

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