General Dynamics Corp GD, Amgen Inc AMGN and Johnson Controls International PLC JCI announced dividends on Wednesday, March 4. These large caps are loyal payers, as they have been paying dividends for several years already.
General Dynamics Corp
The Falls Church, Virginia-based aerospace and defense company announced a $1.10 quarterly cash dividend per common share, which represents a 7.84% rise from the previous payment.
General Dynamics Corp will pay the quarterly dividend to its shareholders on May 8, 2020. In order to benefit, investors must be on the company’s books no later than April 10. The ex-dividend date is scheduled for April 9.
Based on Wednesday’s closing share price of $168.28, the quarterly dividend generates a forward dividend yield of 2.6% compared to the S&P 500’s yield of 1.86% as of March 4.
General Dynamics Corp has been paying dividends since April 1979. The company has grown the dividend by approximately 9.7% every year over the past five years.
General Dynamics backs the payment of the quarterly dividend with $974 million in cash available on hand and 12-month cash flows from operations of about $2.5-$2.7 billion.
The stock has a market capitalization of $48.74 billion, a price-earnings ratio of 14.05 and a price-sales ratio of 1.24. The Peter Lynch chart below shows that the stock is not expensive.
As of February, eight Wall Street sell-side analysts recommend a strong buy, seven suggest a buy, six suggest a hold rating and one has ussued an underperform rating. The average target price is $208.25.
Amgen Inc
The Thousand Oaks, California-based drug major announced a $1.60 quarterly cash dividend per common share, which is in line with the previous one.
Amgen will make the payment on June 8, 2020 for shareholders of record as of May 18. The ex-dividend date is scheduled for May 15.
Based on Wednesday’s closing share price of $215.11, the quarterly cash dividend produces a forward dividend yield of 3.13% versus the S&P 500’s yield of 1.86% as of March 4.
The U.S. drug manufacturer has been paying dividends for approximately a decade and increased them by nearly 19% every year over the last five years.
The company financially sustains the quarterly dividend with approximately $9 billion cash available on hand and 12-month operating cash flows of $9 billion.
The stock has a market capitalization of $126.87 billion, a price-earnings ratio of 16.7 and a price-sales ratio of 5.59. According to the Peter Lynch chart, the stock may not be at its cheapest as its share price trades avove the earnings line.
The stock has received an overweight recommendation rating from sell-side analysts on Wall Street and an average target price of $243.38.
Johnson Controls International
The Irish global producer of fire, HVAC and other security equipment for buildings announced a quarterly cash dividend of 26 cents per common share, which is in line with the previous payment.
The payment will be sent out to shareholders on April 10, 2020. In order to benefit, investors must be on the records of the company not later than March 16. The ex-dividend date is scheduled for March 13.
Based on Wednesday’s closing share price of $39.35, the quarterly dividend generates a forward dividend yield of 2.64% compared to the S&P 500’s yield of 1.86% as of March 4.
Johnson Controls has paid dividends for 35 years and increased them by 9.65% every year over the past five years.
Johnson Controls funds the payment of the quarterly dividend with more than $2 billion cash available on hand and 12-month operating cash flows of approximately $1.4 billion.
The stock has a market capitalization of $30.02 billion, a price-earnings ratio of 6.21 and a price-sales ratio of 1.36. The stock doesn’t trade cheap, according to the Peter Lynch chart.
The stock has a hold recommendation rating from Wall Street with an average target price of $44.21.
Disclosure: I have no positions in any securities mentioned.
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