Shutterstock’s upcoming dividend requires action before November 29

Investors eyeing Shutterstock , Inc.’s (NYSE:SSTK) next dividend payout should mark their calendars for November 29 as the crucial date to own shares due to the two-day settlement period required ahead of the ex-dividend date. The company has announced a forthcoming payment of $0.27 per share on December 14, following a total annual distribution of $1.08 per share last year. This payout yields a 2.4% return based on the current stock price of $45.38.

Shutterstock has maintained a conservative approach to its dividend policy, with a payout ratio of 32% from earnings and just 36% from free cash flow. This cautious strategy supports the sustainability of its dividends and leaves room for potential growth without a high risk of reduction.

The company’s financial health is further evidenced by a robust five-year earnings growth rate of 47% annually, which has provided a solid foundation for both its dividend growth and overall fiscal strength. As a result, Shutterstock’s dividends have seen an average annual increase of about 12%.

InvestingPro Insights
Investors considering Shutterstock, Inc. (NYSE:SSTK) for its upcoming dividend would be interested to know that the company not only has a history of raising its dividend but also holds a strong financial position. According to InvestingPro data, Shutterstock boasts a market capitalization of $1.62 billion and trades at a P/E ratio of 13.68, which is relatively low compared to its near-term earnings growth. The company’s revenue growth over the last twelve months as of Q3 2023 stands at 7.26%, with a notable quarterly revenue growth of 14.28% in Q3 2023.

An InvestingPro Tip highlights that Shutterstock yields a high return on invested capital and has more cash than debt on its balance sheet, indicating a sound financial structure that supports its dividend payouts. Furthermore, the stock has delivered a strong return over the last month, with a 28.85% price total return, reflecting investor confidence.

For those looking to delve deeper into Shutterstock’s financials and strategic outlook, InvestingPro offers additional insights. Subscribers can access a comprehensive list of 12 InvestingPro Tips, which include evaluations of the company’s earnings quality, return on assets, and cash flow capabilities. Currently, InvestingPro’s subscription is available at a special Black Friday sale with discounts of up to 55%, providing an opportune moment for investors to enhance their analysis with valuable expert tips.