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Alberto Abaterusso
Alberto Abaterusso
Articles (2546) 

These Long-Term Payers Announce Dividends

Their dividends have shown strong growth

March 18, 2020 | About:

Winnebago Industries Inc (NYSE:WGO), Fulton Financial Corp (NASDAQ:FULT) and JPMorgan Chase & Co (NYSE:JPM) announced quarterly dividends on Tuesday, March 17. These stocks are long term dividend distributors as they have been releasing payments for more than two decades.

Winnebago Industries

In line with the previous distribution, the Forest City, Iowa-based manufacturer and seller of recreational vehicles in North America announced that on April 29, it will pay a quarterly cash dividend of 11 cents per common share to shareholders of record as of April 15. The ex-dividend date is scheduled for April 14.

Based on Tuesday’s closing share price of $28.41, the quarterly distribution generates a forward dividend yield of 1.58% versus the industry median of 3.55% and a trailing 12-month dividend yield of 1.54% versus the industry median of 3.42%.

Winnebago Industries has paid dividends for about 21 years. It has increased the dividend at a compound annual growth rate (aka CAGR) of 37.4% over the past five years.

Winnebago Industries backs the quarterly dividend with cash balances and cash inflows from operating activities. As of the most recent quarter, which ended on Nov. 20, 2019, the company’s balance sheet had $101.33 million in cash on hand, and its free cash flow statement recorded trailing 12-month operating cash inflow of $158.61 million.

Mainly as a result of the recent market sell-offs, the share price has fallen 46.4% year to date. The 52-week range is $26.50 to $63.45 and the market cap stands at around $956.85 million.

The Peter Lynch chart below shows that the stock is trading below its earnings line, indicating that the current share price is not expensive.

Sell-side analysts on Wall Street issued a buy recommendation rating for shares of Winnebago Industries with an average target price of $58.38 per share.

Fulton Financial Corp

The Lancaster, Pennsylvania-based regional bank announced that on April 15 it will pay a quarterly cash dividend of 13 cents per common share to shareholders of record as of April 1, which is on par with the previous distribution. The ex-dividend date is scheduled for March 31.

Based on Tuesday’s closing share price of $13.72, the quarterly cash dividend generates a forward dividend yield of 4.41% versus the industry median of 4.19% and a trailing 12-month dividend yield of 3.79% versus the industry median of 4.1%.

Fulton Financial has paid quarterly dividends for three decades and increased them by a CAGR of 10.7% over the past five years.

The regional bank funds the quarterly dividend payment with about $663.4 million available on hand as of the most recent fiscal year, which ended on Dec. 30, 2019. Also, $127.71 million in trailing 12-month operating cash inflows helped the company to sustain the payment in 2019.

The stock price has declined 21.3% year to date. The 52-week range is $10.76 to $18 and the market cap trades at around $2.25 billion.

Based on the Peter Lynch chart, the stock is trading below its earnings line, which means that the current share price is not expensive.

Sell-side analysts in Wall Street issued a hold recommendation rating for shares of Fulton Financial with an average target price of $16 per share.

JPMorgan Chase & Co

The U.S. bank major announced that a payment of 90 cents per common share will be made on April 30 to shareholders of record as of April 6 in the form of a cash quarterly dividend. The ex-dividend date is scheduled for April 3. The payment is in line with the previous distribution.

Based on Tuesday’s closing share price of $93.76, the quarterly dividend produces a forward dividend yield of 4.07% and a trailing 12-month dividend yield of 3.64%. The industry median yields 4.19% for the forward dividend and 4.1% for the trailing 12-month dividend.

JPMorgan Chase has paid dividends for about 24 years. The dividend increased at a CAGR of 16.2% over the past five years.

The company finances the payment of the quarterly dividend with cash on hand and operating cash inflows. Cash on hand accounted for funds of $877.47 billion as of the most recent full fiscal year, which ended on Dec. 30, 2019, while the last 12 months of activities brought in cash flows of $6.05 billion.

Year to date, the stock price has dropped nearly 33%. The 52-week range is $84.55 to $141.1 and the market cap is approximately $288.22 billion.

The Peter Lynch chart shows that the stock is trading below the earnings line, which indicates that the current share price is still affordable.

Sell-side analysts in Wall Street issued an overweight recommendation rating for shares of JPMorgan Chase & Co with an average target price of $137.48 per share.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master\\\'s Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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