Chemed Corporation Expands Stock Repurchase Authorization to $300 Million and Increases Quarterly Dividend to 60 Cents

Chemed Corporation has authorized an additional $300 million for stock repurchase and declared a quarterly dividend of 60 cents per share, a 20% increase from the previous dividend. The repurchases will be funded through a combination of cash generated from operations and the revolving credit facility. This is the 217th consecutive quarterly dividend paid by the company in its 54 years as a public company.

Chemed Corporation (NYSE: CHE) has authorized an additional $300 million for stock repurchase and declared a quarterly dividend of 60 cents per share, marking a 20% increase from the previous dividend. The repurchases will be funded through a combination of cash generated from operations and the revolving credit facility. This is the 217th consecutive quarterly dividend paid by the company in its 54 years as a public company [1].

The company's decision to increase its dividend and authorize additional stock repurchases comes after a period of mixed financial performance. While Chemed reported revenue growth of 3.8% year on year in its latest quarter, its earnings per share (EPS) fell short of analyst expectations by 14.3% [2]. The company's operating margin also decreased to 11% from 14.8% in the same quarter last year, while its free cash flow margin improved to 24.5% from 11.2% [2].

Analysts have responded to the company's latest moves with a range of opinions. Oppenheimer has reduced its price target for Chemed from $650 to $580, maintaining an "outperform" rating and suggesting a potential upside of 38.05% from the current share price [1]. Jefferies Financial Group, on the other hand, has set a "hold" rating and a $500 target price on the stock [1]. Other analysts have also issued varying ratings and price targets for Chemed, with an average rating of "Moderate Buy" and a consensus target price of $592.50 [1].

Despite the mixed analyst opinions, Chemed's long-term track record of dividend payments and share repurchases has been a key factor in maintaining investor confidence. The company's unique business model, combining end-of-life care and household services, has also contributed to its resilience in the face of market volatility.

References:
[1] https://www.marketbeat.com/instant-alerts/chemed-nyseche-given-new-58000-price-target-at-oppenheimer-2025-07-31/
[2] https://www.barchart.com/story/news/33726196/chemeds-nyseche-q2-earnings-results-revenue-in-line-with-expectations-but-stock-drops