Business & Investment

This top healthcare stock is buying back more stocks and increasing their payments



On February 4, Quest Diagnostics Incorporated (NYSE: DGX) announced that it would raise dividend payments by 10.7%. Quarterly payments range from $ 0.56 to $ 0.62. This is the 10th time the company has increased dividend payments since 2011.

This means that on an annual basis, investors will earn a dividend income of 2%. With an investment of $ 25,000, you can expect to earn about $ 500 each year. And if the quest announces further rate hikes, that number will increase.

The Quest’s Board has also given more share repurchase approvals and increased its current approvals by $ 1 billion, so there’s even better news for investors. A share buyback is valuable to investors because it helps increase the value of the stock. Also, the smaller the number of issued shares, the better the price-earnings ratio. This can increase price-earnings ratios if investors make better returns.

Over the last 12 months, Quest’s inventory has increased by 13%. The company’s pilot business is on track as volume grows during the pandemic. Quest reported sales growth of 55.8% year-on-year in the fourth quarter, recording $ 3 billion. Net income of $ 609 million was more than double the company’s $ 265 million profit a year ago.

Quest’s stock trading is done at a relatively modest price-earnings ratio of 12, which is still a fairly cheap investment. And since the pandemic isn’t over yet, a lot of potential growth is still underway, and the quest could continue to be a big buy after 2021.

This top healthcare stock is buying back more stocks and increasing their payments

http://www.baystreet.ca/articles/stockstowatch.aspx?id=9760 This top healthcare stock is buying back more stocks and increasing their payments

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