Magic Software Enterprises Ltd. (NASDAQ:MGIC) Plans Dividend Increase – $0.24 Per Share

Magic Software Enterprises Ltd. (NASDAQ:MGIC) announced a semi-annual dividend on Tuesday, November 19th,Wall Street Journal reports. Stockholders of record on Monday, December 23rd will be paid a dividend of 0.236 per share by the software maker on Wednesday, January 8th. This represents a dividend yield of 3.7%. The ex-dividend date is Monday, December 23rd. This is a boost from Magic Software Enterprises’s previous semi-annual dividend of $0.20.

Magic Software Enterprises has raised its dividend payment by an average of 35.0% per year over the last three years. Magic Software Enterprises has a payout ratio of 39.8% meaning its dividend is sufficiently covered by earnings. Analysts expect Magic Software Enterprises to earn $0.99 per share next year, which means the company should continue to be able to cover its $0.41 annual dividend with an expected future payout ratio of 41.4%.

Magic Software Enterprises Price Performance

NASDAQ:MGIC opened at $10.92 on Thursday. The company has a quick ratio of 1.66, a current ratio of 1.76 and a debt-to-equity ratio of 0.13. The business’s 50-day moving average price is $11.30 and its 200 day moving average price is $10.96. Magic Software Enterprises has a 52-week low of $8.40 and a 52-week high of $12.99. The firm has a market cap of $536.17 million, a P/E ratio of 15.60 and a beta of 1.08.

Wall Street Analysts Forecast Growth

Several analysts recently commented on MGIC shares. Barclays increased their target price on shares of Magic Software Enterprises from $14.00 to $15.00 and gave the company an “overweight” rating in a research note on Tuesday. StockNews.com raised Magic Software Enterprises from a “buy” rating to a “strong-buy” rating in a research note on Wednesday.

About Magic Software Enterprises

Magic Software Enterprises Ltd. provides proprietary application development, vertical software solutions, business process integration, information technologies (IT) outsourcing software services, and cloud-based services in Israel and internationally. Its Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services.