Dolby Laboratories, Inc. (NYSE:DLB) Plans Dividend Increase – $0.33 Per Share

Dolby Laboratories, Inc. (NYSE:DLB) announced a quarterly dividend on Tuesday, November 19th,Wall Street Journal reports. Shareholders of record on Tuesday, December 3rd will be given a dividend of 0.33 per share by the electronics maker on Tuesday, December 10th. This represents a $1.32 dividend on an annualized basis and a yield of 1.61%. The ex-dividend date of this dividend is Tuesday, December 3rd. This is a boost from Dolby Laboratories’s previous quarterly dividend of $0.30.

Dolby Laboratories has increased its dividend payment by an average of 8.1% annually over the last three years. Dolby Laboratories has a payout ratio of 43.2% meaning its dividend is sufficiently covered by earnings. Analysts expect Dolby Laboratories to earn $2.67 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 44.9%.

Dolby Laboratories Stock Performance

Dolby Laboratories stock traded up $11.11 during midday trading on Wednesday, reaching $82.02. The company’s stock had a trading volume of 1,548,321 shares, compared to its average volume of 401,186. Dolby Laboratories has a fifty-two week low of $66.35 and a fifty-two week high of $90.06. The firm has a market capitalization of $7.82 billion, a PE ratio of 36.80 and a beta of 0.98. The stock’s 50 day simple moving average is $73.69 and its 200 day simple moving average is $76.01.

Dolby Laboratories announced that its board has initiated a stock buyback program on Wednesday, August 7th that permits the company to buyback $350.00 million in outstanding shares. This buyback authorization permits the electronics maker to purchase up to 5% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes

Several research firms have commented on DLB. StockNews.com raised Dolby Laboratories from a “buy” rating to a “strong-buy” rating in a research report on Monday. Barrington Research reaffirmed an “outperform” rating and set a $100.00 target price on shares of Dolby Laboratories in a research report on Wednesday. Finally, Rosenblatt Securities lifted their price objective on Dolby Laboratories from $98.00 to $100.00 and gave the stock a “buy” rating in a report on Wednesday.

Insider Transactions at Dolby Laboratories

In related news, CEO Kevin J. Yeaman sold 28,512 shares of Dolby Laboratories stock in a transaction dated Tuesday, October 15th. The shares were sold at an average price of $74.12, for a total value of $2,113,309.44. Following the sale, the chief executive officer now directly owns 83,721 shares in the company, valued at $6,205,400.52. This trade represents a 25.40 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Insiders own 39.54% of the company’s stock.

About Dolby Laboratories

Dolby Laboratories, Inc creates audio and imaging technologies that transform entertainment at the cinema, DTV transmissions and devices, mobile devices, OTT video and music services, home entertainment devices, and automobiles. The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for a range of media applications; AVC, a digital video codec with high bandwidth efficiency used in various media devices; Dolby AC-4, a digital audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for cinema and various media devices.