NEWTEK Business Services Corp (NEWT) Increases Dividend to $0.50 Per Share

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NEWTEK Business Services Corp (NASDAQ:NEWT) declared a quarterly dividend on Tuesday, October 30th, Wall Street Journal reports. Stockholders of record on Tuesday, December 18th will be given a dividend of 0.50 per share by the business services provider on Friday, December 28th. This represents a $2.00 annualized dividend and a dividend yield of 10.53%. The ex-dividend date is Monday, December 17th. This is a positive change from NEWTEK Business Services’s previous quarterly dividend of $0.48.

NEWTEK Business Services has a payout ratio of 105.3% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect NEWTEK Business Services to earn $1.97 per share next year, which means the company may not be able to cover its $2.00 annual dividend with an expected future payout ratio of 101.5%.

NEWT opened at $18.99 on Wednesday. The firm has a market capitalization of $339.39 million, a PE ratio of 10.73, a P/E/G ratio of 3.31 and a beta of 1.30. The company has a debt-to-equity ratio of 0.28, a current ratio of 0.31 and a quick ratio of 0.31. NEWTEK Business Services has a 12 month low of $16.07 and a 12 month high of $24.24.

NEWTEK Business Services (NASDAQ:NEWT) last released its quarterly earnings results on Wednesday, August 1st. The business services provider reported $0.44 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.42 by $0.02. The firm had revenue of $11.40 million during the quarter, compared to analyst estimates of $11.47 million. NEWTEK Business Services had a return on equity of 8.86% and a net margin of 105.34%. Research analysts expect that NEWTEK Business Services will post 1.88 earnings per share for the current year.

NEWT has been the subject of several recent research reports. Compass Point set a $19.00 price target on NEWTEK Business Services and gave the stock a “hold” rating in a research report on Thursday, August 2nd. Zacks Investment Research lowered NEWTEK Business Services from a “hold” rating to a “strong sell” rating in a research report on Wednesday, October 17th. Raymond James downgraded NEWTEK Business Services from a “market perform” rating to an “underperform” rating in a research note on Tuesday, August 28th. ValuEngine downgraded NEWTEK Business Services from a “buy” rating to a “hold” rating in a research note on Tuesday, October 2nd. Finally, BidaskClub downgraded NEWTEK Business Services from a “buy” rating to a “hold” rating in a research note on Friday, July 27th. One investment analyst has rated the stock with a sell rating and five have issued a hold rating to the company. NEWTEK Business Services has a consensus rating of “Hold” and a consensus price target of $20.67.

NEWTEK Business Services Company Profile

Newtek Business Services Corp. is a business development company specializing in providing financial and business services to the small-and medium-sized business market in the United States. The firm also seeks to invest in early stage businesses. The firm seeks to makes both debt and equity investments.

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Dividend History for NEWTEK Business Services (NASDAQ:NEWT)

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