Does IDT's (IDT) New Dividend Highlight a Shift in Capital Allocation Priorities?

• On September 22, 2025, IDT Corporation announced that its Board of Directors declared a quarterly cash dividend of US$0.06 per share, payable on October 10, 2025 to shareholders of record as of September 30, 2025.
• This latest dividend declaration highlights IDT's commitment to ongoing shareholder returns, reinforcing confidence in the company's financial position and capital allocation priorities.
• We'll explore how this new quarterly dividend reinforces the investment narrative around IDT's focus on returning value to shareholders.

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IDT Investment Narrative Recap

To be a shareholder in IDT, you have to believe in the company's ability to return value through ongoing dividends and capital returns, while managing potential growth with disciplined capital allocation. The recent quarterly dividend announcement underscores this focus but doesn't materially affect the company's most important short-term catalyst, the continued expansion of its NRS and net2phone segments, and does not directly address the biggest risk: balancing capital returns against future growth investment needs.

The September 2025 dividend declaration fits into a continuous pattern, following similar quarterly announcements throughout the past year, including a prior dividend increase in March. This track record is particularly relevant when weighing the company's capital allocation priorities, which remain a key theme for investors focused on whether ongoing buybacks and dividends could affect long-term reinvestment into its growing business segments.

Yet, concerns persist around capital allocation, especially if increased shareholder distributions eventually limit resources for new growth opportunities...

Read the full narrative on IDT (it's free!)

IDT's outlook anticipates $1.3 billion in revenue and $104.9 million in earnings by 2028. This is based on a forecast annual revenue decline of 0.7% and an $8.9 million increase in earnings from the current $96.0 million.

Uncover how IDT's forecasts yield a $85.60 fair value, a 30% upside to its current price.

Exploring Other Perspectives

Three Simply Wall St Community contributors value IDT shares from US$85.60 up to US$270.38. With ongoing dividend payments and growing business units in focus, perspectives on IDT’s future can vary widely, see how your view compares.

Explore 3 other fair value estimates on IDT - why the stock might be worth over 4x more than the current price!

Build Your Own IDT Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your IDT research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free IDT research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate IDT's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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