Wednesday, March 1, 2017

Dividend Stock To Watch: The Estee Lauder Companies Inc. (EL)

The Estee Lauder Companies Inc. (NYSE:EL) share price jumped at US$ 83.72 before falling back to end the trade at US$ 82.97 a share. The dividend stock is -13.6% off a 52-week high stock price of US$ 97.48 but is up 10.63% since hitting the US$ 75.3. Investors are buying the stock with a trailing-twelve-month price-to-earnings (P/E) ratio of 28.69.

After a -0.93% fall from previous close of US$ 83.75, The Estee Lauder Companies Inc. (EL) has a US$ 30.5 Billion market cap. The company pays a US$ 0.34-cent-per-share quarterly dividend, giving it a 1.64% yield. That brings its full year payout to US$ 1.36 and 42.1% annual payout ratio based on EPS. According to FT, Year on year, both dividends per share and earnings per share excluding extraordinary items growth increased 23.91% and 4.83%, respectively. The positive trend in dividend payments is noteworthy since only some companies in the Personal & Household Prods. industry pay a dividend. Additionally when measured on a five year annualized basis, dividend per share growth is above the industry average relative to its peers, while earnings per share growth is in-line with the industry average.

The EL has soared 8.91% year-to-date. The equity has gained steam in recent weeks, with shares up about 7.57% in the past three months. It added -1.99%, climbed 1.64% and jumped -7.98% in the week, one month and six months, respectively. Revenue growth rate was recorded at 5% and net income per share was seen moving at a 11.2% rate in the past five years.

The Estee Lauder Companies Inc. (NYSE:EL) is over 6% above analysts’ consensus price target of US$ 89.4. The stock has blown through analysts’ low price target of US$ 72, but is still below the high US$ 105 target. On a price appreciation basis over the past 12 months, the stock returned -8.25%.

Financial Times data shows, In 2016, Estee Lauder Companies Inc reported a dividend of 1.14 USD, which represents a 23.91% increase over last year. The 14 analysts covering the company expect dividends of 1.29 USD for the upcoming fiscal year, an increase of 13.16%. The most recent short interest data show 2.69% of the company’s stock are short sold. It would take about 2.72 days to cover all short positions. In terms of volatility, it has a beta coefficient of 0.87 and technical analysis volatility indicator called Average True Range or ATR around 1.22.

The Estee Lauder Companies Inc. (NYSE:EL) closed -3.07% below its 200-day moving average which many technicians use as a guide to the long-term trend, so stocks above the line are considered to be in longer-term uptrends, while those below it are considered to be in downtrends. The stock is 3.8% above another chart threshold, its 50-day moving average and 0.58% above its 20-day simple moving average.

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Dividend Stock To Watch: The Estee Lauder Companies Inc. (EL)

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