Dividend yield

Seagate (STX) has a dividend yield of 4.5%, amounting to an annualized payout of $2.52 per share. Seagate has a dividend payout ratio of 47.2%, and the firm has increased dividend payments for the last seven years. Seagate has increased its dividend at a CAGR (compound annual growth rate) of 11.3% in the last three years and 33.3% in fiscal 2017.

Seagate has tried to improve shareholder value by increasing dividend payments to offset a decline in revenue. In Q3 2018, Seagate paid a dividend of $179 million. Peers Western Digital (WDC), NetApp (NTAP), Hewlett Packard Enterprise (HPE), and IBM (IBM) have dividend yields of 2.6%, 2.1%, 3%, and 4.6%, respectively.

A Look at Seagate’s Dividend Yield and 12-Month Target Price

Cash flow from operations

Seagate managed to reduce operating expenses by 13% YoY (year-over-year) to $385 million in Q3 2018. Capital expenditure was $69 million, as the firm focused on ramping up its high capacity HDD products. The firm expects capex to account for 5% of revenue in fiscal 2018.

Cash flow from operations was $558 million with free cash flow of $489 million in Q3 2018. Seagate’s CFO David Morton stated, “Over the last two years, we have made many changes to optimize our operational footprint and supply chain management. Product complexity is a significant challenge in the storage marketplace right now and we believe our agility and manufacturing responsiveness within the component supply chain provides a significant competitive advantage for Seagate.”

Price target of $55 for Seagate

Seagate stock has appreciated 36% this year after rising 17% in 2017. Of the 28 analysts tracking Seagate, six have recommended “buys,” and 19 have recommended “holds.” There are three “sell” recommendations on the stock. Analysts’ 12-month average price target for Seagate is $56.82, and their median estimate is $55. Seagate is trading at a premium of 1.2% to analysts’ median estimate.

Latest articles

WeWork is gearing up for an IPO. On Wednesday, the company made its IPO filing with the SEC public and expects to garner $3.5 billion from its IPO.

After FCC Chairman Ajit Pai recommended the approval of the T-Mobile–Sprint merger, Representative David Cicilline urged the FCC to allow public comment.

Cresco Labs (CRLBF) is set to report its Q2 earnings on August 21 after the market closes. The company's stock fell 5.3% yesterday.

Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.

NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.

Nio Inc. (NIO) has disrupted the automotive space since 2014 but only made waves in the market since its IPO. Investors have suffered numerous setbacks.