Does Juniper Networks, Inc. (NYSE:JNPR) Have A Place In Your Dividend Portfolio?

With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Juniper Networks is a new dividend …

Could Juniper Networks, Inc. (NYSE:JNPR) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. Unfortunately, it’s common for investors to be enticed in by the seemingly attractive yield, and lose money when the company has to cut its dividend payments.

With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Juniper Networks is a new dividend aristocrat in the making. We’d agree the yield does look enticing. During the year, the company also conducted a buyback equivalent to around 8.7% of its market capitalisation. Some simple analysis can reduce the risk of holding Juniper Networks for its dividend, and we’ll focus on the most important aspects below.

Click the interactive chart for our full dividend analysis

historic-dividend
NYSE:JNPR Historic Dividend July 29th 2020

Payout ratios

Dividends are usually paid out of company earnings. If a company is paying more than it earns, then the dividend might become unsustainable – hardly an ideal situation. Comparing dividend payments to a company’s net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Juniper Networks paid out 78% of its profit as dividends. It’s paying out most of its earnings, which limits the amount that can be reinvested in the business. This may indicate limited need for further capital within the business, or highlight a commitment to paying a dividend.

We also measure dividends paid against a company’s levered free cash flow, to see if enough cash was generated to cover the dividend. Of the free cash flow it generated last year, Juniper Networks paid out 48% as dividends, suggesting the dividend is affordable. It’s positive to see that Juniper Networks’ dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.

With a strong net cash balance, Juniper Networks investors may not have much to worry about in the near term from a dividend perspective.

Consider getting our latest analysis on Juniper Networks’ financial position here.

Dividend Volatility

Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. Looking at the data, we can see that Juniper Networks has been paying a dividend for the past six years. The company has been paying a stable dividend for a while now, which is great. However we’d prefer to see consistency for a few more years before giving it our full seal of approval. During the past six-year period, the first annual payment was US$0.4 in 2014, compared to US$0.8 last year. Dividends per share have grown at approximately 12% per year over this time.

We’re not overly excited about the relatively short history of dividend payments, however the dividend is growing at a nice rate and we might take a closer look.

Dividend Growth Potential

Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. It’s good to see Juniper Networks has been growing its earnings per share at 17% a year over the past five years. Earnings per share are growing nicely, but the company is paying out most of its earnings as dividends. This might be sustainable, but we wonder why Juniper Networks is not retaining those earnings to reinvest in growth.

Conclusion

When we look at a dividend stock, we need to form a judgement on whether the dividend will grow, if the company is able to maintain it in a wide range of economic circumstances, and if the dividend payout is sustainable. Juniper Networks’ payout ratios are within a normal range for the average corporation, and we like that its cashflow was stronger than reported profits. Next, earnings growth has been good, but unfortunately the company has not been paying dividends as long as we’d like. Juniper Networks has a number of positive attributes, but it falls slightly short of our (admittedly high) standards. Were there evidence of a strong moat or an attractive valuation, it could still be well worth a look.

Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. For instance, we’ve picked out 2 warning signs for Juniper Networks that investors should take into consideration.

We have also put together a list of global stocks with a market capitalisation above $1bn and yielding more 3%.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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GSSSIETW ties up with Juniper Networks

Mysuru: GSSS Institute of Engineering & Technology for Women has signed an MOU with Juniper Networks and has become a member of Juniper …

Mysuru, July 28:- GSSS Institute of Engineering and Technology for Women, Mysuru, has signed a Memorandum of Understanding (MoU) with Juniper Networks and has become a member of Juniper Networks Academic Alliance. With this, GSSSIETW, Mysuru will be the first women’s only engineering college in India to be a member of JNCAA programme.

Becoming a member, GSSSIETW, in association with Juniper Networks, will be providing courses and certifications on Cloud Solutions, Network Automation, and DevOps and develop knowledge that reflects industry trends. These certifications will enhance the employability of students and hence provide the opportunity for internships and placements.

Juniper Networks Inc is an American multinational corporation headquartered in Sunnyvale, California. The company develops and markets networking products, including routers, switches, network management software, network security products, and software-defined networking technology. The Juniper Networks Cloud and Automation Academy programme is an industry-academic partnership that provides faculty and students with highly relevant instructional materials, hands-on labs that use industry-leading networking equipment, and even the opportunity to earn an entry-level Juniper certification.

The JNCAA programme provides a unique digitised learning platform with content that can help the college to take part in the networking industry. Juniper certifications help students stand out in a competitive employment market. The world’s biggest and busiest wired and wireless carriers, content and internet service providers, cloud and data centre providers, and cable and satellite operators all run on Juniper Networks. (MR)

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Juniper Networks Inc. (NYSE:JNPR) Stock is Soaring, Here is Why

The Juniper Networks Inc. (JNPR) shares are trading at higher $24.49 and the avg recommendation for the stock is Moderate Buy. while the current …

The Juniper Networks Inc. (JNPR) shares are trading at higher $24.49 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $24.21.

To add more color to this target, the company’s high over the last year is $27.39 and the low is $15.20. Over the last 52 weeks, JNPR is down -10.59% while the S&P 500 is up 0.57%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, JNPR reported a profit of $579.3 million. Juniper Networks Inc. also saw revenues increase to $998.0 million. In addition, JNPR has free cash flow of $250.4 million as of 03-2020. The company’s EBITDA came in at $93.4 million which compares well with its peers.

JNPR booked profit margins of 7.50%, its Return on Equity (ROE) is 7.30%, and its Return on Assets is 3.80%. All told, it is clear that, JNPR needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. JNPR has a short ratio of 4.12 and outstanding shares of 330.80M.

Company Outlook

JNPR has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.85 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.97. Juniper Networks Inc. JNPR also noted assets of $8.61 billion at the end of the last quarter. Investors should also keep an eye on sector updates as JNPR has historically followed its peers on positive news.

All told, Juniper Networks Inc. JNPR has strung together solid data and demonstrated underlying fundamentals. At its current valuation, JNPR represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Juniper Networks Inc. JNPR is now commanding a market cap of 7.91B and a float of 327.26M. JNPR is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of JNPR stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in JNPR, either long or short, and we have not been compensated for this article.

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Will Lower Revenues Hurt Juniper’s (JNPR) Earnings in Q2?

Juniper Networks, Inc. JNPR is slated to report second-quarter 2020 results on Jul 28, after the closing bell. In the March-end quarter, the company …

Juniper Networks, Inc. JNPR is slated to report second-quarter 2020 results on Jul 28, after the closing bell. In the March-end quarter, the company posted negative earnings surprise of 8%. The bottom line missed the Zacks Consensus Estimate by 2 cents.

The Sunnyvale, CA-based network products and services provider is expected to have recorded lower aggregate revenues on a year-over-year basis. This is likely to have resulted from supply-chain issues due to the COVID-19 crisis and related macroeconomic situation as well as challenges at some of Juniper’s largest service provider customers. That said, the company is expected to have benefited from changes in its go-to-market structure to better align its sales strategies with each of the core customer verticals.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly announcement.

Factors at Play

During the quarter under review, Transports Vervaeke, a leading international chemical and fuel logistics provider, chose the Wireless LAN platform from Juniper’s Mist Systems to streamline network operations and improve employee productivity in its garages, warehouses and office locations across Europe. Also, Juniper partnered with T-Systems — one of the leading cross-manufacturer digital service providers — to deliver a managed SD-WAN infrastructure as part of a service overlay solution for companies with complex network and connectivity requirements.

Mist Systems launched several new solutions that assist enterprises as they welcome employees, customers and guests back onsite after stay-at-home restrictions are lifted. Further, Juniper’s Contrail Enterprise Multicloud was selected as the common services management platform by Net One Systems, one of Japan’s largest network integrators. Such developments are likely to have had a positive impact on the company’s top line.

The Zacks Consensus Estimate for revenues in the Product segment (comprising Routing, Switching and Security), which contributes for the lion’s share of total revenues, is pegged at $653 million. The projection indicates a decline of 8.5% from the year-ago quarter’s reported figure. Revenues in the Service segment are estimated at $396 million, which suggests an increase from $389 million reported in the year-ago quarter.

For the June-end quarter, the Zacks Consensus Estimate for total revenues is pegged at $1,053 million that indicates a decline of 4.5% from the year-ago quarter’s reported figure. Adjusted earnings per share are pegged at 35 cents, which calls for a decline of 12.5% from the prior-year quarter’s recorded figure.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Juniper this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Juniper’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00% as both are pegged at 35 cents.

Juniper Networks, Inc. Price and EPS Surprise

Juniper Networks, Inc. Price and EPS SurpriseJuniper Networks, Inc. Price and EPS Surprise
Juniper Networks, Inc. Price and EPS Surprise

Juniper Networks, Inc. price-eps-surprise | Juniper Networks, Inc. Quote

Zacks Rank: Juniper currently has a Zacks Rank #3.

Stocks to Consider

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Community Bank System, Inc. CBU is slated to release second-quarter 2020 results on Jul 27. It has an Earnings ESP of +26.47% and currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

NXP Semiconductors N.V. NXPI is scheduled to release second-quarter 2020 results on Jul 27. The company has an Earnings ESP of +11.90% and a Zacks Rank #2, at present.

Lincoln Electric Holdings, Inc. LECO has an Earnings ESP of +5.50% and a Zacks Rank of 2. The company is set to report second-quarter 2020 results on Jul 27.

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Juniper Networks, Inc. (NYSE:JNPR) Crashes -38.4% In 2020; Is It Attractive Enough At $24.49?

For Juniper Networks, Inc. (JNPR), analysts’ consensus is at an average recommendation of Hold while assigning it a mean rating of 2.9. Splitting up …

For Juniper Networks, Inc. (JNPR), analysts’ consensus is at an average recommendation of Hold while assigning it a mean rating of 2.9. Splitting up the data highlights that, out of 21 analysts covering the stock, 3 rated the stock as a Sell while 1 recommended an Overweight rating for the stock. 12 suggested the stock as a Hold whereas 4 see the stock as a Buy. 1 analyst(s) advised it as an Underweight. The company is expected to be making an EPS of $0.34 in the current quarter.

Upright in the green today for gaining 1.45%, in the last five days JNPR remained trading in the green while hitting it’s week-highest on Wednesday, Jul 22 when the stock touched $24.67- price level, adding 0.73% to its value on the day. Juniper Networks, Inc.’s shares saw a change of -0.57% in year-to-date performance and have moved 5.56% in past 5-day. Juniper Networks, Inc. (NYSE:JNPR) showed a performance of 5.83% in past 30-days. Number of shares sold short was 15.34 Million shares which calculate 4.12 days to cover the short interests.

Wall Street analysts have assigned a consensus price target of $24.16 to the stock, which implies targetted prices is already lagging behind -1.35% to its current value. Analysts have been projecting $17 as a low price target for the stock while placing it at a high target of $30. It follows that stock’s current price would jump +22.5% in reaching the projected high whereas dropping to the targeted low would mean a loss of -30.58% for stock’s current value.

Juniper Networks, Inc. (JNPR) estimates and forecasts

Statistics highlight that Juniper Networks, Inc. is scoring comparatively lower than the scores of other players of the relevant industry. The company lessened -1.55% of value to its shares in past 6 months, showing an annual growth rate of -11.05% while that of industry is -2.2. Apart from that, the company came lowering its revenue forecast for fiscal year 2020. The company is estimating its revenue growth to decline by -15% in the current quarter and calculating -12.5% decline in the next quarter. This year revenue growth is estimated to drop -2.5% from the last financial year’s standing.

16 industry analysts have given their estimates about the company’s current quarter revenue by setting an average figure of $1.05 Billion for the same. And 16 analysts are in estimates of company making revenue of $1.1 Billion in the next quarter that will end in September 01, 2020. Company posted $1.1 Billion and $1.13 Billion of sales in current and next quarters respectively a year earlier. Analysts are expecting this quarter sales to drop by -4.4% while estimating it to be -3.1% for the next quarter.

Weighing up company’s earnings over the past 5-year and in the next 5-year periods, we find the company posting an annual earnings growth rate of 27.4% during past 5 years. In 2020, company’s earnings growth rate is likely to be around -38.4% while estimates for its earnings growth in next 5 years are of -1.18%

JNPR Dividends

Juniper Networks, Inc. is more likely to be releasing its next quarterly report between July 28 and July 28, 2020, and investors are confident in the company announcing better current-quarter dividends despite the fact that it has been facing issues arising out of mounting debt. With an annual yield of 3.31%, the share has a forward dividend of 0.8 which implies that company’s dividend yield remained growing in trailing twelve months while having a 5 year average dividend yield of 2.11%.

Juniper Networks, Inc. (NYSE:JNPR)’s Major holders

Insiders are in possession of 1.22% of company’s total shares while institution are holding 96.01% percent of that, with stock having share float percentage of 97.19%. Investors also watch the number of corporate investors in a company very closely, which is 651 institutions for Juniper Networks, Inc. that are currently holding shares of the company. Dodge & Cox Inc is the top institutional holder at JNPR for having 50.28 Million shares of worth $962.37 Million. And as of March 30, 2020, it was holding 15.17% of the company’s outstanding shares.

The second largest institutional holder is Vanguard Group, Inc. (The), which was holding about 40.23 Million shares on March 30, 2020. The number of shares represents firm’s hold over 12.14% of outstanding shares, having a total worth of $770Million.

On the other hand, Dodge & Cox Stock Fund and Vanguard Total Stock Market Index Fund are the top two Mutual Funds which own company’s shares. As of March 30, 2020, the former fund manager was holding 29762665 shares of worth $569.66 Million or 8.98% of the total outstanding shares. The later fund manager was in possession of 9.82 Million shares on March 30, 2020, making its stake of worth around $187.98 Million in the company or a holder of 2.96% of company’s stock.

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