Genpact said on July 13, 2023 that its board of directors had declared a regular quarterly dividend of $0.14 per share ($0.55 annualized). Previously, the company paid $0.14 per share.
Shares must be purchased before the ex-div date of September 7, 2023 to be eligible for the dividend. Shareholders of record as of September 8, 2023 will receive payment on September 26, 2023.
At the current share price of $39.32/share, the dividend yield of the stock is 1.40%.
Looking back five years and taking a sample each week, the average dividend yield was 1.02%, the lowest 0.77% and the highest 1.65%. The standard deviation of returns is 0.16 (n=236).
The current dividend yield is 2.37 standard deviations above the historical average.
Additionally, the company’s dividend payout ratio is 0.28. The payout ratio tells us how much of a company’s income is paid out as dividends. A payout ratio of one (1.0) means that 100% of the company’s income is paid out as dividends. A payout ratio above one means the company is dipping into its savings to maintain its dividend, which is not a healthy situation. Companies with little growth prospects should pay most of their income in the form of dividends, which generally means a payout ratio between 0.5 and 1.0. Companies with good growth prospects should retain part of their profits in order to invest in these growth prospects, which translates into a payout ratio of zero to 0.5.
The company’s 3-year dividend growth rate is 0.41%, demonstrating that it has increased its dividend over time.
What is fund sentiment?
There are 886 funds or institutions declaring positions in Genpact. This is an increase of 18 owners or 2.07% over the last quarter. Average portfolio weight of all funds dedicated to G is 0.41%, an increase of 20.84%. The total number of shares held by institutions has decreased by 1.56% over the past three months to 215,926,000 shares. 
G’s put/call ratio is 0.34, indicating a bullish outlook.
Analyst price forecast suggests 23.36% upside
As of July 6, 2023, the one-year average price target for Genpact is 48.51. The forecast ranges from a low of 41.41 to a high of $58.80. The average price target represents a 23.36% increase from its last published closing price of 39.32.
Check out our ranking of companies with the biggest upward price target.
Genpact’s forecasted annual revenue is 4,774 million, an increase of 8.70%. Projected annual non-GAAP EPS is 3.06.
What are the other shareholders doing?
Wellington Management Group Llp holds 13,795,000 shares representing 7.49% ownership of the company. In its previous filing, the company stated that it holds 14,001,001 shares, representing a decrease of 1.49%. The company decreases its portfolio allocation in G of 2.83% over the last quarter.
Nalanda India Equity Fund holds 13,144,000 shares representing 7.14% ownership of the company. No change in the last quarter.
Victory Capital Management holds 8,807,000 shares representing 4.78% ownership of the company. In its previous filing, the company said it held 8,702,000 shares, representing a raise of 1.19%. The company decreases its portfolio allocation in G of 38.62% over the last quarter.
Capital International Investors holds 6,632,000 shares representing 3.60% ownership of the company. In its previous filing, the company said it held 6,391,000 shares, representing a raise of 3.63%. The company decreases its portfolio allocation in G of 0.76% over the last quarter.
VETAX – Victory Sycamore Established Value Fund holds 6,039,000 shares representing 3.28% ownership of the company. No change in the last quarter.
General information about Genpact
(This description is provided by the company.)
Genpact is a global professional services firm that brings business transformation to life. Guided by purpose – the relentless pursuit of a world that works better for people – the company drives digital innovation and smart, digital-enabled operations for its customers. Guided by experience in reinventing and executing thousands of processes for hundreds of clients, many of them Global Fortune 500 companies, the company is driving real-world transformation at scale. Genpact thinks with design, dreams digitally and solves problems with data and analytics. Combining its expertise in end-to-end operations and its AI-powered platform, Genpact Cora, focus on the details – all 90,000+ of them. From New York to New Delhi, and more than 30 countries in between, the company connects every dot, reinvents every process, and reinvents the way businesses work. The company knows that reinventing every step from start to finish creates better business results. Either way, Genpact will be there with you – accelerating digital transformation to create bold, lasting results – because transformation happens here.
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This story originally appeared on Fintel.
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