Dividend Policy of Pegasystems
- Dividend per Share: Pegasystems has maintained a constant quarterly dividend of 0.03 USD per share since at least 2024. This policy remains in place even after a recently approved stock split.
- Stock Split: Shareholders of Pegasystems have approved a two-for-one stock split, which will be implemented after market close on June 20, 2025. Trading of the split shares will begin on June 23, 2025. This split makes the stock more accessible to a broader base of investors and employees.
Impact of the Stock Split on the Dividend
- Dividend Yield: Although the dividend per share remains at 0.03 USD after the split, this corresponds to a dividend of 0.06 USD per share before the split. This results in a higher dividend yield for investors as the stock price decreases due to the split.
- Example: If the stock price before the split is 100 USD, the dividend yield is 0.03% (0.03 USD / 100 USD). After the split, the stock price falls to 50 USD, and the dividend yield rises to 0.06% (0.03 USD / 50 USD), which represents a doubling of the yield.
Attractiveness for Investors
- Stable Cash Flows: Pegasystems has robust cash flows that ensure the sustainability of the dividends. In the first quarter of 2024, the company generated an operational cash flow of 180 million USD, and the free cash flow for the first half of 2024 was 218 million USD.
- Growth Potential: Pegasystems operates in a fast-growing market for artificial intelligence and enterprise software, which offers the potential for further growth.
Overall, Pegasystems’ dividend policy offers an attractive return for investors, particularly in light of the recently approved stock split. This could enhance the stock’s appeal for retail investors seeking stable returns.