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Alberto Abaterusso
Alberto Abaterusso
Articles (1986) 

A Trio of Loyal Payers Announce Dividends

They have been rewarding their shareholders for decades

March 26, 2020 | About:

Campbell Soup Co (NYSE:CPB), Hingham Institution for Savings (NASDAQ:HIFS) and Worthington Industries Inc (NYSE:WOR) announced quarterly dividends on Wednesday, March 25. These three companies are loyal payers, as they have been paying dividends for decades.

Campbell Soup Co

The Camden, New Jersey-based manufacturer and marketer of food and beverage products in North America announced that on April 27 it will pay a quarterly dividend of 35 cents per common share, which is in line with the previous distribution, to shareholders of record April 9. The ex-dividend date is scheduled for April. 8.

Based on Wednesday’s closing share price of $41.41, the quarterly dividend produces a forward dividend yield of 3.3% versus the industry median of 2.74% and a trailing 12-month dividend yield of 3.38% versus the industry median of 2.51%.

Campbell Soup has been paying quarterly dividends since July 1985 and increased them by a compound annual growth rate (CAGR) of 2.33% over the past five years.

The packaged foods company funds the quarterly dividend payment with nearly $60 million available in cash on hand as of the most recent quarter, which ended on Jan. 25, 2020. Approximately $1.4 billion in trailing 12-month operating cash inflows helped the company to underpin the payment from Jan. 28, 2019 to Jan. 27, 2020.

Year to date, the stock price has dropped 16.2%. The 52-week range is $33.16 to $57.54 and the market capitalization stands at around $12.5 billion.

The Peter Lynch chart below shows that the stock is trading far above its earnings line, indicating that the current share price is high.

Wall Street sell-side analysts recommend a hold rating for shares of Campbell Soup Co with an average target price of $49.65 per share.

Hingham Institution for Savings

The Hingham, Massachusetts-based regional bank announced that on April 15 it will pay a quarterly cash dividend of 42 cents per common share to shareholders of record as of April 6. The ex-dividend date is scheduled for April 3. The payment will represent a 2.4% hike from the previous quarterly cash dividend.

Based on Wednesday’s closing share price of $129.89, the quarterly cash dividend produces a forward dividend yield of 1.18% versus the industry median of 4.55% and a trailing 12-month dividend yield of 1.21% versus the industry median of 4.44%.

Hingham Institution for Savings has been paying dividends since May 1989. The dividend has grown at a CAGR of 8.73% over the past five years.

The bank backs the quarterly dividend with cash balances that amounted to $9 million as of the most recent fiscal year, which ended on Dec. 30, 2019. Trailing 12-month cash inflows from operating activities of $33.2 million were also used to finance the payment of the quarterly dividend from Jan. 16, 2019 to Jan. 15, 2020.

Year to date, the stock price has lost 38.2%. The 52-week range is $129.89 to $216.82 and the market capitalization is approximately $277.54 million.

Based on the Peter Lynch chart, the stock is trading below its earnings line, suggesting that the current share price is still affordable.

Worthington Industries Inc

The Columbus, Ohio-based steel products company announced that on June 29, it will pay a quarterly cash dividend of 24 cents per common share, which is in line with the previous distribution. In order to benefit, shareholders must be on the books of the company not later than June 15. The ex-dividend date is scheduled for June 12.

Based on Wednesday’s closing share price of $22.65, the quarterly dividend generates a forward dividend yield of 4.07% compared to the industry median of 4.56% and a trailing 12-month dividend yield of 4.19% versus the industry median of 4.42%.

Worthington Industries Inc has been paying quarterly dividends since 1968, the year that the company went public. The dividend increased at a CAGR of 7.33% over the past five years.

Financially, the steel company supports the payment of the quarterly dividend with cash on hand and operating cash inflows. There were funds of $72.3 million available in cash on hand on Nov. 29, 2019 (the end of the most recent quarter reported). The business generated cash inflows of $291.2 million over the last 12 months reported through Nov. 29, 2019.

The share price has fallen 46.3% so far this year. The 52-week range is $19.28 to $44.69 and the market capitalization is roughly $1.27 billion.

The Peter Lynch chart shows that the stock is trading near the earnings line, which indicates that the current share price is not expensive.

Wall Street sell-side analysts recommend a hold rating for shares of Worthington Industries Inc and have established an average target price of $40 per share.

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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