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Rollins, Inc. (NYSE:) has announced an upcoming ex-dividend date in four days, making it critical for shareholders to conclude share purchases by November 9th to qualify for the forthcoming dividend. The company has scheduled a US$0.15 per share dividend distribution for December 11th.
The total dividend payout by Rollins in the previous year amounted to US$0.60 per share. At a share price of $38.12, this resulted in a trailing yield of 1.6%. It is an important factor for investors when evaluating the sustainability of a company’s dividend and its growth potential.
Dividends are generally funded from a company’s income. If the portion of profits set aside for dividends exceeds earnings, it could potentially jeopardize the dividend’s sustainability. Last year, Rollins allocated 62% of its profits towards dividends, a standard practice for the company.
Another key aspect for investors is to ascertain if Rollins generated sufficient free cash flow to cover its dividend. In the last fiscal year, dividends consumed 54% of the company’s free cash flow. This information provides essential context for shareholders as they prepare for the imminent ex-dividend date and consider their investment strategy moving forward.
InvestingPro Insights
Rollins, Inc. has been a consistent performer in terms of dividends, having maintained dividend payments for 53 consecutive years, a notable InvestingPro Tip. The dividend growth for the last twelve months as of Q3 2023 was 25.0%, a reflection of the company’s commitment to rewarding its shareholders.
The company’s market capitalization stands at a robust 18.45B USD, with an adjusted P/E ratio of 41.72 for Q3 2023, indicating a high earnings multiple. This is in line with another InvestingPro Tip that points out the company’s high return on invested capital.
Revenue for the last twelve months as of Q3 2023 was 2980.58M USD, with a growth rate of 13.12%. This aligns with the InvestingPro Tip that highlights the company’s accelerating revenue growth.
InvestingPro offers more than 20 additional tips for Rollins, Inc., providing a comprehensive view of the company’s performance and potential. This data, coupled with the company’s strong dividend history, could be a significant factor for investors considering their investment strategy.
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