Chemed Corporation (NYSE: NYSE:CHE), the parent company of VITAS Healthcare and Roto-Rooter, has declared a quarterly cash dividend increase of 25%, announcing a payout of 50 cents per share.
The dividend is set to be distributed on August 30, 2024, to shareholders on record as of August 12, 2024. This marks a 10-cent rise from the 40-cent dividend issued in June 2024 and continues the company's history of consistent shareholder returns.
The increase follows the company's previous dividend hike from 38 cents to 40 cents per share in August 2023.
With this announcement, Chemed continues its long-standing tradition of rewarding investors, having issued quarterly dividends for 213 consecutive quarters over its 53-year tenure as a publicly traded company.
Chemed Corporation, listed on the New York Stock Exchange, is recognized as the nation's largest provider of end-of-life hospice care through its subsidiary VITAS.
Additionally, it operates Roto-Rooter, the leading provider of plumbing and drain cleaning services in the United States.
InvestingPro Insights
Chemed Corporation's (NYSE: CHE) commitment to shareholder returns is further highlighted by the company's impressive track record of dividend increases. An InvestingPro Tip notes that Chemed has raised its dividend for 15 consecutive years, a testament to its financial stability and dedication to returning value to its shareholders. Moreover, the company's ability to maintain dividend payments for an extraordinary 54 years underscores its operational resilience and long-term strategic planning.
In terms of financial metrics, Chemed's market capitalization stands at $8.72 billion, with a P/E ratio of 29.1, reflecting investor confidence in the company's earnings capacity. The company also boasts a healthy PEG ratio of 0.93 for the last twelve months as of Q2 2024, suggesting that its earnings growth is in line with the stock price, providing a balanced investment proposition. Additionally, Chemed's revenue growth of 6.79% over the same period indicates a steady increase in its business operations, which could be reassuring for investors looking for consistent performance.
Investors interested in a deeper analysis of Chemed Corporation's financial health and future prospects can find a wealth of InvestingPro Tips, with 11 additional tips available at https://www.investing.com/pro/CHE. These tips include insights into the company's valuation multiples, profitability predictions for the year, and an analysis of its debt levels, providing a comprehensive view of Chemed's investment potential.
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