National Research Announces $0.12 Dividend – Market Implications on Ex-Dividend Date of September 26, 2025

Introduction

National Research (NRC) has maintained a consistent dividend policy, offering regular cash payouts to shareholders. With a recent cash dividend of $0.12 per share announced, the company reaffirms its commitment to returning value to investors. The ex-dividend date of September 26, 2025, will mark the cutoff for shareholders to be eligible for the payout. In a market environment characterized by moderate earnings growth and stable interest rates, this dividend announcement is well-timed to support investor confidence.

Dividend Overview and Context

Essential Dividend Metrics

Dividends are a key component of shareholder returns, with total return encompassing both capital appreciation and dividend yield. The ex-dividend date is particularly important because it is the date on which a stock trades without the value of the upcoming dividend. For National Research, the ex-dividend date of September 26, 2025, will likely result in a price adjustment, typically equal to the dividend amount.

Dividend Announcement Breakdown

The company has declared a cash dividend of $0.12 per share, payable to shareholders of record as of the ex-dividend date of September 26, 2025. The absence of a stock dividend indicates that the payout remains purely in cash, which is a conservative and predictable strategy for dividend-focused investors.

The ex-dividend date is expected to result in a small but measurable share price adjustment, with historical patterns suggesting that the market quickly accounts for the distribution of value to shareholders.

Backtest Analysis

Methodology and Key Insights

The backtest of National Research’s stock performance following past dividend dates reveals a strong and rapid price rebound. The analysis spans multiple dividend cycles and uses a dividend capture strategy, assuming reinvestment of cash dividends. It accounts for the average duration and probability of recovery from the dividend drop.

Performance Highlights

• Average recovery time: 0.83 days following the ex-dividend date
• Probability of full recovery within 15 days: 92%
• Implication: This pattern supports the use of NRC in dividend capture strategies due to its short recovery window and high likelihood of price rebound

Driver Analysis and Implications

Internal Financial Drivers

According to the latest financial report, National Research generated:

• Total revenue: $70.334 million
• Operating income: $16.534 million
• Net income attributable to common shareholders: $12.534 million
• EPS (Basic): $0.53

The strong operating performance and robust net income support the company's ability to sustain its dividend. The operating margin of 23.5% indicates efficient cost management, with operating expenses at $26.522 million, including $25.431 million in marketing and general administrative costs.

The payout ratio, calculated based on net income, is approximately 22.8%, reflecting a conservative dividend policy. This allows for reinvestment and potential for future growth.

Macro and Market Trends

Given the broader market’s shift toward stable, income-producing equities, National Research’s dividend strategy aligns with investor demand for resilience and predictable cash flows. In a low-growth environment, companies with strong cash flows and healthy balance sheets—like NRC—are particularly attractive.

Investment Strategies and Recommendations

Short-Term Strategies

For short-term investors or those employing dividend capture strategies, National Research offers an attractive setup due to its short recovery time and high probability of rebound. Entering the stock shortly before the ex-dividend date (September 26, 2025) and exiting after the recovery period could offer a risk-controlled approach to capturing the $0.12 dividend.

Long-Term Strategies

For long-term investors, National Research’s strong fundamentals and consistent dividend policy support a buy-and-hold approach. With a healthy payout ratio and strong operating leverage, the company is well-positioned to maintain and potentially increase future dividends. Investors should consider the broader macroeconomic outlook when evaluating long-term exposure.

Conclusion & Outlook

National Research’s $0.12 dividend and ex-dividend date of September 26, 2025, offer both short-term traders and long-term investors compelling opportunities. The company’s financial strength, combined with historically strong post-dividend performance, positions it as a reliable income stock.

Looking ahead, investors should keep an eye on National Research’s upcoming earnings report for further insight into the company’s trajectory and potential for future dividend increases.

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