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Alberto Abaterusso
Alberto Abaterusso
Articles 

3 Loyal Payers Announce Dividends

They have grown their dividends significantly

May 07, 2020 | About:

United Community Banks Inc (NASDAQ:UCBI), Manulife Financial Corp (NYSE:MFC) and Atmos Energy Corp (NYSE:ATO) announced quarterly dividends on Wednesday, May 6.

These companies attract the interest of dividend investors because they have been paying dividends for more than 10 years and have increased them significantly over the past five years.

United Community Banks Inc

The Blairsville, Georgia-based regional bank announced that on July 6, it will pay a quarterly cash dividend of 18 cents per common share, which is on par with the prior payment. The payment will be made for shareholders of record as of June 15. The ex-dividend date is scheduled for June 12.

Based on Wednesday’s closing share price of $17.63, the quarterly dividend generates a forward yield of 4.09%. The S&P 500 yields 2.09% as of May 6.

United Community Banks has been paying dividends for more than 10 years and increased them by a compound annual growth rate of nearly 44% over the past five years.

The company sustains the payment of the quarterly dividend with $603.2 million in cash on hand as of the most recent quarter ended on March 30, 2020. Yearly operating cash flow was around $195 million.

In the past year, the share price fell by 37%, determining a 52-week range of $15.71 to $31.66. The market capitalization is approximately $1.38 billion, the price-earnings ratio is 8.32 versus the industry median of 8.62 and the price-sales ratio is 2.55 versus the industry median of 2.02.

Wall Street sell-side analysts issued an overweight recommendation rating with an average target share price of $21.86 for this stock.

Manulife Financial Corp

The Canadian insurance and asset management company announced that on June 19, it will pay a quarterly cash dividend of 28 Canadian cents ($0.20) per common share, which will be on par with the prior payment. The payment will be sent out to shareholders of record as of May 19. The ex-dividend date is scheduled for May 18.

Based on Wednesday’s closing share price of $11.78, the quarterly cash dividend generates a forward dividend yield of 6.58%. The S&P 500 yields 2.09% as of May 6.

Manulife Financial Corp has been paying dividends for about two decades and has grown them at a CAGR of 7.8% over the past five years.

The company backs the payment of the quarterly dividend yearly operating cash flow of around $14.5 billion.

In the past year, the stock price has fallen by 35%, determining a 52-week range of $8.62 to $21.23. The stock has a market capitalization of $23.08 billion, a price-earnings ratio of 6 versus the industry median of 9.89 and a price-sales ratio of 0.43 versus the industry median of 0.8.

Wall Street sell-side analysts issued an overweight recommendation rating with an average target share price of $16.55 for this stock.

Atmos Energy Corp

Based in Dallas, Texas, Atmos Energy is engaged in the distribution and transportation of regulated natural gas as well as the management of several underground storage reservoirs in Texas and ancillary services to the pipeline industry.

Atmos Energy announced that on June 8, it will pay a quarterly cash dividend of 57.5 cents per common share, which is on par with the prior distribution. The payment will be sent out to shareholders of record as of May 26. The ex-dividend date is scheduled for May 22.

Based on Wednesday’s closing share price of $96.55, the quarterly dividend produces a forward yield of 2.38%. The S&P 500 grants a dividend yield of 2.09% as of May 6.

Atmos Energy has been paying dividends for more than three decades. The company has grown the dividend at a CAGR of 7.5% over the past five years.

The company backs the payment of the quarterly dividend with cash available on hand and cash flows generated by operating activities. As of the most recent quarter, which ended on Dec. 30, 2019, the balance sheet had almost $190 million in cash and cash equivalents, while the cash flow statement recorded nearly $980 million in trailing 12-month operating cash flow.

In the past year, the share price has decreased by 4%, determining a 52-week range of $77.92 to $121.08. The stock has a market capitalization of approximately $11.81 billion, a price-earnings ratio of 21.84 versus the industry median of 15 and a price-sales ratio of 4.01 versus the industry median of 1.22.

Wall Street sell-side analysts issued an overweight recommendation rating with an average target share price of $116.33 for this stock.

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 gold, silver and precious metals mining industries. 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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