Karat Packaging Inc. (NASDAQ:KRT) Raises Dividend to $0.40 Per Share

Karat Packaging Inc. (NASDAQ:KRT) announced a quarterly dividend on Tuesday, November 5th,Zacks Dividends reports. Investors of record on Wednesday, November 20th will be paid a dividend of 0.40 per share on Friday, November 29th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 5.48%. The ex-dividend date of this dividend is Wednesday, November 20th. This is an increase from Karat Packaging’s previous quarterly dividend of $0.35.

Karat Packaging has a payout ratio of 84.2% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Equities research analysts expect Karat Packaging to earn $1.88 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 85.1%.

Karat Packaging Price Performance

Shares of NASDAQ KRT opened at $29.20 on Tuesday. The stock has a fifty day simple moving average of $26.85 and a two-hundred day simple moving average of $27.41. Karat Packaging has a 1-year low of $21.06 and a 1-year high of $31.21. The firm has a market cap of $584.58 million, a price-to-earnings ratio of 20.86 and a beta of 1.03. The company has a current ratio of 3.12, a quick ratio of 1.82 and a debt-to-equity ratio of 0.29.

Analysts Set New Price Targets

Separately, Truist Financial lowered Karat Packaging from a “buy” rating to a “hold” rating and cut their price target for the stock from $34.00 to $28.00 in a report on Friday, August 9th.

About Karat Packaging

Karat Packaging Inc, together with its subsidiaries, engages in the manufacture and distribution of single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It provides food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other products under the Karat Earth brand.