LONDON, UK / ACCESSWIRE / March 16, 2018 / Active-Investors has a free review on Newtek Business Services Corp. (NASDAQ: NEWT) ("Newtek") following the Company's announcement that it will begin trading ex-dividend on March 19, 2018. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date (excluding weekend) that is by latest at the end of the trading session on March 16, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on NEWT:
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On January 18, 2018, Newtek announced that its Board of Directors declared a first quarter 2018 cash dividend of $0.401 per share, which represents an approximate 11% increase over Q1 2017 dividend of $0.36 per share. The Q1 2018 dividend is payable on March 30, 2018, to shareholders of record as of March 20, 2018. The Company also announced that it has increased its 2018 annual cash dividend forecast to $1.701 per share, which would represent a 3.7% increase over Newtek's FY17 annual dividend of $1.64 per share.
Newtek's Board of Directors expects to maintain a dividend policy with the objective of making quarterly distributions in an amount that approximates 90% - 100% of the Company's annual taxable income.
Newtek's indicated dividend represents a yield of 8.50%, which is more than four times higher than the average dividend yield of 1.97% for the Services sector. The Company has raised dividend for two years in a row.
Newtek has a dividend payout ratio of 83.3%, which means that the Company spends approximately $0.83 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, Newtek is forecasted to report earnings of $2.00 for the next year, which is comfortably higher than the Company's annualized dividend of $1.60 per share.
As of December 31, 2017, Newtek's cash and cash equivalents were $2.46 million compared to $2.05 million as on December 31, 2016. The Company's total investments at FairValue were $456.69 million as on December 31, 2017, while its total liabilities were $241.28 million. The Company's balance sheet remains strong, and it is well positioned over the long-term to sustain its dividend distribution.
About Newtek Business Services Corp.
Newtek is an internally managed business development company, which along with its controlled portfolio companies, provides a wide range of business services and financial products under the Newtek® brand to the small- and medium-sized business (SMB) market. Since 1999, Newtek has provided state-of-the-art, cost-efficient products and services, and efficient business strategies to SMB accounts across all 50 states of the US to help them grow their sales, control their expenses, and reduce their risk.
Stock Performance Snapshot
March 15, 2018 - At Thursday's closing bell, Newtek Business Services' stock declined 1.64%, ending the trading session at $18.60.
Volume traded for the day: 120.94 thousand shares.
Stock performance in the last month – up 7.08%; previous six-month period – up 5.32%; past twelve-month period – up 6.96%; and year-to-date – up 0.59%
After yesterday's close, Newtek Business Services' market cap was at $333.13 million.
The stock has a dividend yield of 8.60%.
The stock is part of the Services sector, categorized under the Business Services industry. This sector was up 0.1% at the end of the session.
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