M&T Bank Corp. (MTB, Financial) and Xcel Energy Inc. (XEL, Financial) declared quarterly dividends on Feb. 19. The two large-cap stocks are loyal payers as they have been distributing dividends for at least two decades.
M&T Bank
M&T Bank announced that a payment of $1.1 per common share will be made on March 31 to shareholders of record as of March 2. The ex-dividend date is scheduled for Feb. 28. The payment is in line with the previous distribution.
Based on Wednesday’s closing share price of $168.26, the quarterly dividend produces a trailing 12-month dividend yield of 2.45% and a forward yield of 2.62%. The industry median is 3.09% for the trailing 12-month dividend and 3.19% for the forward dividend.
The Buffalo, New York-based regional bank has paid dividends since June 1998 and increased them by nearly 8% over the past five years.
The company supports the quarterly dividend with $9.1 billion in cash on hand as of Dec. 30, 2019. Further, the business can generate an operating cash flow of $2 billion to $2.5 billion every 12 months.
Year to date, the share price has declined by 1%. The 52-week range is $141.5 to $176.11.
The stock has a market capitalization of $21.97 billion, a price-earnings ratio of 12.19, a price-book ratio of 1.59 and a price-sales ratio of 3.69. The Peter Lynch chart shows that the stock is trading below its fair value. Thus, it is not expensive.
With 10.83% of outstanding shares, Vanguard Group Inc. is the company's largest institutional owner, followed by BlackRock Inc. with 7.5% and Wellington Management Group LLP with 4.80%.
Sell-side analysts on Wall Street issued a hold recommendation rating for shares of M&T Bank with an average target price of $182.22 per share.
Xcel Energy
Xcel Energy announced a quarterly dividend of 43 cents per common share. The Minneapolis-based distributor of electricity will pay it on April 20 to shareholders of record as of March 13. The ex-dividend date is scheduled for March 12. The payment represents a 6.2% hike from the previous distribution.
Based on Wednesday’s closing price of $70.79, the quarterly distribution produces a forward dividend yield of 2.43% versus the industry median of 3.13% and a trailing 12-month yield of 2.29% versus the industry median of 3%.
Xcel Energy has paid dividends since Sept. 2000. The company has hiked the dividend by 6.2% over the past five years.
The company supports the payment of the dividend with $888 million in cash available on hand as of Dec. 30, 2019. The last 12 months of operations have generated about $3.2 billion in cash flows.
The stock has climbed 11.5% year to date. The 52-week range is $53.35 to $71.43.
The stock has a market capitalization of $37.12 billion, a price-earnings ratio of 26.81, a price-book ratio of 2.82 and a price-sales ratio of 3.15. The Peter Lynch chart below shows the shares are trading above their fair value, so they may be not cheap.
With 9.87% of outstanding shares, BlackRock is the company's largest fundholder, followed by Vanguard Group with 9.25% and JPMorgan Chase & Co. with 7.38%.
Sell-side analysts on Wall Street issued a hold recommendation rating for shares of Xcel Energy with an average target price of $68.35 per share.
Disclosure: I have no positions in any securities mentioned.
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