LONDON, UK / ACCESSWIRE / June 20, 2017 / Pro-Trader Daily takes a closer look at Medifast, Inc. (NYSE: MED) as the Company’s stock will begin trading ex-dividend on June 21, 2017. In order to capture the dividend payout, investors must purchase the stock one day prior to the ex-dividend date that is by latest June 20, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:
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On June 07, 2017, Medifast announced that its Board of Directors has declared a $0.32 cash dividend to its stockholders. The quarterly cash dividend of $0.32 per share is payable on August 09, 2017, to stockholders of record as of the close of business on June 23, 2017.
Medifast’s indicated dividend represents a yield of 3.02%, substantially higher compared to the average dividend yield for the Services sector of 1.94%. The Company started paying a regular dividend since December 2015 and last increased its dividend in December 2016 when its Board of Directors declared a $0.32 quarterly cash dividend to its stockholders. This reflects a $0.07, or 28% increase, over the previous quarter’s cash dividend.
Medifast has a dividend payout ratio of 62.4% which translates to the Company ability to distribute approximately $0.62 for every $1.00 earned, which demonstrates that the dividend is sufficiently covered by earnings currently. According to analysts’ estimates, Medifast is projected to post earnings of $2.49 per share in the coming year, which is almost doubled the Company’s annualized dividend of $1.28.
As per its Q1 2017 results announced on May 05, 2017, the Company’s balance sheet remains strong with stockholders’ equity of $99.2 million and working capital of approximately $80.5 million as of March 31, 2017. Medifast’s cash, cash equivalents, and investment securities increased $2.2 million to $79.0 million as of March 31, 2017, compared to $76.8 million at December 31, 2016. The Company remains free of interest bearing debt. Having this liquidity cushion would allow the Company to absorb any fluctuations in earnings and pay its dividend without interruption.
About the Company
Medifast is a leading provider of clinically studied healthy living products and programs. It partners with more than 12,500 Take Shape For Life® Health Coaches to help its Clients achieve Optimal Wellness through a proven weight management and Habits of Health system. Medifast was founded in 1980 in Owings Mills, Maryland and has been recommended by more than 20,000 Doctors. The Company was named to Forbes’ 100 Most Trustworthy Companies in America List in 2016 and 2017.
Recent Development for Medifast
On June 14, 2017, Medifast announced that it has established a repurchase plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, to facilitate the continued repurchase of shares of the Company’s common stock under its existing stock repurchase program. The Company may repurchase up to 850,000 shares of its common stock, which remain available under the outstanding repurchase authorization as of June 14, 2017.
Rule 10b5-1 allows a Company to purchase its shares at times when it otherwise might be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods.
On Monday, June 19, 2017, the stock closed the trading session at $41.99, marginally down by 0.94% from its previous closing price of $42.39. A total volume of 43.56 thousand shares have exchanged hands. Medifast’s stock price surged 3.07% in the past six months and 29.68% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 0.86%. The stock is trading at a PE ratio of 25.48 and has a dividend yield of 3.05%. The stock currently has a market cap of $503.46 million.
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