1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (2275) 

A Trio of Loyal Payers Announces Dividends

They have grown their dividends substantially

May 20, 2020 | About:

Northrop Grumman Corp (NYSE:NOC), NiSource Inc (NYSE:NI) and M&T Bank Corp (NYSE:MTB) announced quarterly dividends on Tuesday, May 19. These companies are also loyal payers, as they have been paying dividends for more than two decades.

Northrop Grumman Corp

The Falls Church, Virginia-based security operator for aerospace and defense announced that on June 17, it will pay a $1.45 cash quarterly dividend per common share, which represents a 9.85% increase from the prior payment. The payment will be sent out to shareholders of record as of June 1. The ex-dividend date is scheduled for May 29.

Based on Tuesday’s closing price of $327.03 per share, the quarterly dividend generates a forward yield of 1.77%.

Northrop Grumman has been paying dividends since August 1989 and has increased them by a compound annual growth rate of 13.8% over the past five years.

The company backs the payment of the dividend with cash available on hand and cash flows produced by operating activities. As of the most recent quarter, which ended on March 30, 2020, the balance sheet had nearly $3.3 billion in cash and cash equivalents, while the cash flow statement indicated that trailing 12-month operating activities brought in total cash flows of $4.22 billion.

In the past year, the share price rose by 3.4%, determining a 52-week range of $263.31 to $385.01. The market cap trades at around $54.52 billion, the price-earnings ratio is 24.57 versus the industry median of 14.1 and the price-sales ratio is 1.62 versus the industry median of 0.95.

Wall Street sell-side analysts issued an overweight recommendation rating for this stock with an average target share price of $397.17.

NiSource Inc

The Merrillville, Indiana-based regulated distributor of natural gas and electricity in the United States announced that on Aug. 20, it will pay a quarterly cash dividend of 21 cents per common share, which will be on par with the prior distribution. The payment will be sent out to shareholders of record as of July 31. The ex-dividend date is scheduled for July 30.

Based on Tuesday’s closing price of $23.05 per share, the quarterly cash dividend generates a forward dividend yield of 3.64%.

NiSource Inc has been paying dividends since April 1995 and has grown them at a CAGR of nearly 14% over the past five years.

The company backs the payment of the quarterly dividend with $203.8 million available in cash on hand and equivalents as of the most recent quarter, which ended on March 30, 2020. The company also uses a portion of cash flow generated by operating activities to finance the dividend. Over the past 12 months, the operating cash flow came in at $1.55 billion.

Over the past year, the stock price has declined by 18%, determining a 52-week range of $19.56 to $30.67. The stock has a market cap of about $8.82 billion, a price-earnings ratio of 48.02 versus the industry median of 15.19 and a price-sales ratio of 1.77 versus the industry median of 1.22.

Wall Street sell-side analysts issued an overweight recommendation rating for this stock with an average target share price of $27.69.

M&T Bank Corp

The Buffalo, New York-based regional bank announced that on June 30, it will pay a quarterly cash dividend of $1.10 per common share, which is on par with the prior distribution. The payment will be made to shareholders of record as of June 1. The ex-dividend date is scheduled for May 29.

Based on Tuesday’s closing price of $91.54 per share, the quarterly dividend produces a forward yield of 4.81%.

M&T Bank has been paying dividends since May 1998 and has grown them at a CAGR of nearly 8% over the past five years.

The company sustains the payment of the quarterly dividend with $11.44 billion available in cash on hand and equivalents as of the most recent quarter, which ended on March 30, 2020. Operating cash flow for the past 12 months was around $1.55 billion.

In the past year, the share price has fallen by 45%, determining a 52-week range of $85.09 to $174.93. The stock has a market capitalization of approximately $11.74 billion, a price-earnings ratio of 7.42 versus the industry median of 8.28 and a price-sales ratio of 1.97 versus the industry median of 1.88.

Wall Street sell-side analysts issued a hold recommendation rating for this stock with an average target share price of $121.23.

Disclosure: I have no positions in any securities mentioned.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here

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

Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)