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Why Rollins Stock Rose 14% in January

By Joe Tenebruso – Feb 8, 2020 at 11:05AM

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The bug slayer's shareholders have larger dividends coming their way.

What happened

Shares of Rollins (ROL -0.34%) jumped 14.4% last month, according to data from S&P Global Market Intelligence. The pest control specialist delivered solid fourth-quarter financial results and boosted its cash payout to investors.

So what

Rollins' revenue climbed 13.8% year over year, to $506 million, in the fourth quarter. That helped to drive a 10.5% increase in earnings before interest, taxes, depreciation, and amortization (EBITDA) to $97 million. 

Rollins' management is committed to passing much of these profits on to shareholders through a steadily rising dividend. The company raised its quarterly cash payout by 14.3%, to $0.12 per share, marking the 18th straight year Rollins has increased its dividend by at least 12%. 

A person handing cash to another person

Rollins is handing out more cash to its investors. Image source: Getty Images.

Now what 

Rollins continues to succeed with a growth-through-acquisition strategy. By purchasing smaller pest control businesses and integrating them into its increasingly global operations, Rollins is able to wring out costs, strengthen these businesses' technology platforms, and improve their profitability. Investors can expect more of the same in the coming months and years.

"We continue to invest in innovative technology as well as seeking out strong acquisitions that fit well into the Rollins family of brands," CFO Eddie Northen said in Rollins' fourth-quarter earnings release. 

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Rollins. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Rollins, Inc. Stock Quote
Rollins, Inc.
ROL
$34.78 (-0.34%) $0.12

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