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Alberto Abaterusso
Alberto Abaterusso
Articles (1919) 

3 Loyal Large-Cap Dividend Payers Announce Distributions

These companies have been paying dividends for over 20 years

January 17, 2020 | About:

Consolidated Edison Inc (NYSE:ED), HP Inc (NYSE:HPQ) and CMS Energy Corporation (NYSE:CMS) announced dividends on Thursday, Jan. 16. These large caps are loyal payers and have been paying dividends for more than two decades.

Consolidated Edison

Shares of Consolidated Edison Inc were unchanged in after-hours trading on Jan. 16 after the New York-based distributor of regulated electric, gas and steam announced a 76.5 cents quarterly cash dividend per common share, up 3.4% from the previous payment.

Consolidated Edison will pay the quarterly dividend to its shareholders on March 16. Investors must be on the records of the company no later than Feb. 19 to receive the payment. The ex-dividend date is scheduled for Feb. 18.

Based on Thursday’s closing share price of $89.17, the quarterly payment generates a forward dividend yield of 3.43 versus the S&P 500’s yield of 1.76% as of Jan. 16.

Consolidated Edison has been paying dividends since February of 1998. The company has hiked the dividend by 3.3% over the past five years.

Consolidated Edison financially sustains the payment of the quarterly dividend with $78 million in cash available on hand. The last 12 months of activities have generated an operating cash flow of around $3 billion.

The stock price has increased by 16.6% in the past year through Jan. 16. The 52-week range is $75.25 to $94.97.

The stock has a market capitalization of $29.64 billion, a price-earnings ratio of 21.03 and a price-sales ratio of 2.23. The Peter Lynch chart below shows that the stock is not cheap.

Among Wall Street analysts, seven suggest holding the stock, five issued underperformance warnings, while one recommends to sell shares. The average target price is $90.50.

HP

Shares of HP Inc were down 0.92% at a price of $21.47 per unit in after-hours trading on Thursday after the Palo Alto, California-based computer hardware company announced a 17.62 cents quarterly cash dividend per common share, which is in line with the previous one.

HP will pay the dividend to its shareholders on April 1. Investors must be on the company’s books no later than March 11 in order to benefit. The ex-dividend date is scheduled for March 10.

Based on Thursday’s closing share price of $21.67, the quarterly cash dividend produces a forward dividend yield of 3.25% versus the S&P 500’s yield of 1.76% as of Jan. 16.

The company has made payments for 31 years and increased the dividend by 18.3% over the last five years.

The company funds the quarterly dividend with about $4.54 billion cash available on hand. The last 12 months of activities produced an operating cash flow of nearly $4.65 billion.

The stock price was almost flat in the past year through Jan. 16. The 52-week range is $15.93 to $24.09.

The stock has a market capitalization of $4.73 billion, a price-book ratio of 3.79 and a price-sales ratio of 1.64. According to the Peter Lynch chart, the stock is trading below its fair value.

The stock has a hold recommendation rating from Wall Street with an average target price of $20.73.

CMS Energy

Shares of CMS Energy moved up 1.05% to a price of $65.38 per unit at close of regular trading on Thursday after the Michigan-based distributor of regulated electricity and natural gas announced a quarterly cash dividend of 40.75 cents per common share.

The payment, which is a 6.5% hike compared to the previous one, will take place on Feb. 28. In order to benefit, investors must be on the company’s records not later than Feb. 7. The ex-dividend date is scheduled for Feb. 6.

Based on Thursday’s closing share price, the quarterly dividend generates a forward dividend yield of 2.49% versus the S&P 500’s yield of 1.76% as of Jan. 16.

The energy operator has paid dividends for three decades and increased them by 7.2% over the past five years.

CMS Energy finances the payment of the quarterly dividend with about $403 million cash available on hand. The business generated a cash flow of around $1.53 billion in the last 52 weeks of operations.

The stock price has risen nearly 28.5% in the past year through Jan. 16. The 52-week range is $50.08 to $65.72.

The stock has a market capitalization of $18.56 billion, a price-earnings ratio of 29.85 and a price-sales ratio of 2.7. According to the Peter Lynch chart, the stock is not cheap.

The stock has an overweight recommendation rating from Wall Street with an average target price of $66.37.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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