Encompass Health Corporation (NYSE:EHC) Announces $0.19 Quarterly Dividend

Encompass Health Corporation (NYSE:EHC) declared a quarterly dividend on Thursday, May 7th. Shareholders of record on Wednesday, July 1st will be paid a dividend of 0.19 per share on Wednesday, July 15th. This represents a c) dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Wednesday, July 1st.

Encompass Health has decreased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 2 consecutive years. Encompass Health has a dividend payout ratio of 13.6% meaning its dividend is sufficiently covered by earnings. Research analysts expect Encompass Health to earn $6.46 per share next year, which means the company should continue to be able to cover its $0.76 annual dividend with an expected future payout ratio of 11.8%.

Encompass Health Stock Performance

Encompass Health stock traded up $2.20 during mid-day trading on Thursday, hitting $107.21. The company had a trading volume of 1,329,102 shares, compared to its average volume of 1,163,858. The company has a current ratio of 1.17, a quick ratio of 1.08 and a debt-to-equity ratio of 0.76. The company has a market capitalization of $10.63 billion, a price-to-earnings ratio of 17.90, a P/E/G ratio of 2.29 and a beta of 0.72. The company’s fifty day moving average is $103.01 and its 200-day moving average is $107.19. Encompass Health has a 12-month low of $92.77 and a 12-month high of $127.99.

Encompass Health (NYSE:EHC) last posted its earnings results on Thursday, April 30th. The company reported $1.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.51 by $0.09. Encompass Health had a net margin of 10.04% and a return on equity of 18.28%. The firm had revenue of $1.59 billion during the quarter, compared to analysts’ expectations of $1.57 billion. During the same period in the previous year, the business posted $1.37 EPS. The business’s revenue was up 9.0% compared to the same quarter last year. Encompass Health has set its FY 2026 guidance at 5.890-6.110 EPS. Equities research analysts predict that Encompass Health will post 5.97 EPS for the current year.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. Wall Street Zen upgraded Encompass Health from a “hold” rating to a “buy” rating in a research report on Saturday, May 2nd. Barclays reduced their target price on Encompass Health from $153.00 to $140.00 and set an “overweight” rating for the company in a report on Tuesday. Two analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Buy” and an average price target of $144.17.

Encompass Health Company Profile

Encompass Health Corporation is a leading provider of post?acute healthcare services in the United States, operating a comprehensive network of inpatient rehabilitation hospitals and home health and hospice agencies. Its inpatient rehabilitation hospitals offer intensive therapy programs for patients recovering from conditions such as stroke, brain injury, spinal cord injury, cardiac and pulmonary disorders, and orthopedic procedures. Through its home health segment, Encompass Health delivers skilled nursing, physical therapy, occupational therapy and speech therapy to patients in the comfort of their homes, while its hospice services provide end?of?life care focused on symptom management and emotional support for patients and families.

Founded in 1984 as HealthSouth Corporation and rebranded as Encompass Health in 2018, the company has grown organically and through acquisitions to serve patients across more than 30 states.