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Insperity (NSP) Announces a Dividend Hike, Cheers Investors

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In a shareholder-friendly move, Insperity, Inc. NSP yesterday announced a hike in its dividend payout. NSP’s board of directors has approved a dividend hike of 16%, thereby raising its quarterly cash dividend from 45 cents per share to 52 cents. The raised dividend will be paid out on Jun 23, 2022, to all its shareholders of record as of Jun 9, 2022. The move reflects NSP’s intention to utilize free cash for enhancing its shareholders’ returns.

Last year too, Insperity had announced a 12.5% dividend hike, increasing its quarterly cash dividend from 40 cents per share to 45 cents.

Insperity is consistently making efforts in rewarding its shareholders. During first-quarter 2022, NSP repurchased almost 308,000 shares for $27.4 million and paid out $17.2 million as cash dividends. In 2021, NSP repurchased 716,000 shares for $69.7 million and paid out dividends totaling $144.2 million. During 2020, NSP repurchased 1.4 million shares for $99.4 million and paid out dividends worth $61.9 million. Such moves indicate NSP’s commitment toward boosting its shareholder value and underline its confidence in its business.

Insperity is currently benefiting from an increase in revenues per worksite employee (WSEE) and a rise in paid worksite employees. Both these factors are favorably contributing to Insperity’s top-line growth. In first-quarter 2022, revenues grew 22.6% year over year on the back of a 3% increase in revenues per worksite employee (WSEE) and a 19.5% increase in paid worksite employees. The average number of worksite employees paid per month, 278,660, rose 19.5% year over year. WSEEs paid from new client sales grew 37%, backed by strong sale bookings in fourth-quarter 2021.

The stock has appreciated 4.4% over the past three months against the 18% decline of the industry it belongs to.

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Zacks Rank and Stocks to Consider

Insperity currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Business Services sector are Cross Country Healthcare CCRN, Gartner IT and Avis Budget CAR, each sporting a Zacks Rank #1 at present.

Cross Country Healthcare has an expected earnings growth rate of 54.2% for the current year. CCRN has a trailing four-quarter earnings surprise of 29.2%, on average.

Cross Country Healthcare has a long-term earnings growth rate of 6.9%.

Gartner’s shares have risen 6.9% in the past year. IT delivered a trailing four-quarter earnings surprise of 24.2%, on average.

The Zacks Consensus Estimate for Gartner's current-year earnings has moved up 13.6% in the past 90 days.

Avis Budget has an expected earnings growth rate of 59.8% for the current year. CAR delivered a trailing four-quarter earnings surprise of 102.1%, on average.

Avis Budget has a long-term earnings growth rate of 19.4%.


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