ARMOUR Residential REIT Inc (ARR, Financial), Waddell & Reed Financial Inc (WDR, Financial) and AMCON Distributing Company (DIT, Financial) announced dividends on Monday, Dec. 23. These stocks are loyal payers that have been distributing dividends for more than a decade.
ARMOUR
Shares of ARMOUR Residential REIT Inc. were up 0.4% to a price of $17.67 per unit in extended trading on Dec. 23 following the announcement of a 17 cents monthly cash dividend per common share, which is in line with the previous payment.
ARMOUR will pay the monthly dividend to its shareholders on Jan. 30, 2020. Investors must be registered on the books of the company no later than Jan. 15 to receive the payment. The ex-dividend date is scheduled for Jan. 14.
Based on Monday’s closing share price of $17.60, the monthly distribution produces a forward dividend yield of 11.56% versus the industry median of 5.15% and produces a trailing 12-month dividend yield of 12.25% versus the industry median of 5.1%.
The Vero Beach, Florida-based residential mortgage-backed U.S. securities investment company has paid dividends for about 10 years. The company has continuously raised the dividend since 2018. However, the yearly dividend of ARMOUR has decreased in each of the following observed periods: by 5.26% over the last 12 trading months, by 16.31% over the past 3 years and by 18.85% over the past 5 years.
ARMOUR backs the monthly dividend with $243.61 million in cash available on hand as of Sept. 30 this year. The last 12 months of business have generated an operating cash flow of negative $84.5 million.
The stock has fallen 15% year to date. The 52-week range is $16.00 to $21.54.
The stock has a market capitalization of $1.04 billion, a forward price-earnings ratio of 7.35 and a price-book ratio of 0.75.cThe Peter Lynch chart below shows that the stock is trading below its fair value.
With 15.90% of outstanding shares, BlackRock Inc. is the company's largest top fundholder, followed by The VANGUARD GROUP INC with 12.27% and Invesco Ltd. with 5.19%.
Waddell & Reed Financial
Shares of Waddell & Reed Financial Inc were unchanged at a price of $16.66 per unit in after-hours trading on Monday after the company announced a 25 cents quarterly cash dividend per common share, which is on par with the previous one.
Waddell & Reed Financial will send the payment out to its shareholders on Feb. 3, 2020. Investors must be on the books of the company no later than Jan. 13 in order to benefit. The ex-dividend date is scheduled for Jan. 10.
Based on Monday’s closing share price, the quarterly cash dividend produces a forward dividend yield of 5.95% versus the industry median of 4.36% and produces a trailing 12-month dividend yield of 6.01% versus the industry median of 4.05%.
The Overland Park, Kansas-based asset management and financial planning firm has paid quarterly dividends for about 22 years. Waddell & Reed Financial has continuously increased dividends since 2018.
Waddell & Reed Financials’ yearly dividend was flat over the trailing 12-month time period, declined 16.54% in the past 3 years and declined 2.24% in the past 5 years, but increased 1.04% in the past 10 years.
The company funds the quarterly dividend payment with about $854.2 million available on hand as of Sept. 30 this year. Further, the last 12 months of activities generated an operating cash flow of $177.5 million.
The stock price has fallen nearly 8% year to date. The 52-week range is $14.92 to $19.18.
The stock has a market capitalization of $1.17 billion, a price-book ratio of 1.42 and a price-sales ratio of 1.18. Based on the Peter Lynch chart, the stock is trading below its fair value.
BlackRock Inc. is the company's largest top fund holder with 15.52% of outstanding shares, followed by The VANGUARD GROUP INC with 10.70% and FMR LLC with 5.40%.
AMCON
AMCON Distributing Company announced that it will pay a 28 cents cash special dividend per common share to its shareholders on Jan. 28, 2020. In order to benefit, investors must be on the company’s record no later than Jan. 6. While the ex-dividend date is scheduled for Jan. 3.
The special dividend adds to the payment of a regular quarterly cash dividend of 18 cents per common share that AMCON distributed on Nov. 27, Aug. 27, May 28 and March 4 this year.
Based on Monday’s closing share price of $74.09, the quarterly dividend generates a yield of 0.96% for both the forward dividend and the trailing 12-month dividend. The industry median yields 2.37% for the forward dividend and 2.11% for the trailing 12-month dividend.
AMCON has paid dividends for about 21 years.
The Omaha, Nebraska-based consumer products distribution company posted a dividend growth in each of the following observed periods: 0.28% in the past year, 11.92% in the past 3 years, 6.99% in the past 5 years and 14.53% in the past 10 years.
AMCON supports the payment of the quarterly dividend with $340,000 cash available on hand as of Sept. 30 this year. Operations generated cash flow of negative $11.5 million over the trailing 12-month time period.
Year-to-date, the stock price has fallen 25%. The 52-week range is $68.27 to $105.
The stock has a market capitalization of $42.39 million, a price-earnings ratio of 14.32, a price-book ratio of 0.68 and a price-sales ratio of 0.03.
The Peter Lynch chart shows that the stock is trading near its fair value.
With 3.7% of outstanding shares, DIMENSIONAL FUND ADVISORS LP is the company's largest insitutional owner, followed by Jim Simons with 1.90% and BRIDGEWAY CAPITAL MANAGEMENT INC with 1.61%.
Sell-side analysts in Wall Street issued a buy recommendation rating for shares of AMCON Distributing Company.
Disclosure: I have no positions in any securities mentioned.
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