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Alberto Abaterusso
Alberto Abaterusso
Articles (2191) 

3 Long-Term Payers Announce Dividends

They have grown their dividends significantly in recent years

July 09, 2020 | About:

Phillips 66 (NYSE:PSX), MetLife Inc (NYSE:MET) and CSX Corp (NASDAQ:CSX) announced quarterly dividends on Wednesday, July 8. These companies are also loyal payers, as they have been distributing dividends for several years already.

Phillips 66

The Houston, Texas-based oil and gas refiner and midstream operator announced that on Sept. 1, a 90 cents per common share quarterly cash dividend will be paid to its shareholders of record as of Aug. 18. The payment will be on par with the previous one. The ex-dividend date is scheduled for Aug. 17.

Based on Wednesday’s closing price of $63.98 per share, the quarterly cash dividend produces a forward dividend yield of 5.6%.

Phillips 66 has paid dividends for almost eight years and increased them by a compound annual growth rate of 13.1% over the past five years.

The company sustains the quarterly dividend with $1.2 billion available in cash on hand and $5.5 billion in trailing 12-month operating cash flow.

The company’s debt-equity ratio stands at 0.61, which is above the industry median of 0.47, but an interest coverage ratio of 8.13 indicates that Phillips 66 is most likely able to pay the interest expenses on the outstanding debt.

The share price has declined 35% over the past year, determining a 52-week range of $40.04 to $119.92.

The stock has a market capitalization of $27.94 billion, a price-book ratio of 1.3 versus the industry median of 0.74 and an enterprise value-Ebitda ratio of 13.26 versus the industry median of 6.34.

Wall Street sell-side analysts recommend a buy rating for this stock and have established an average target price of $88.68 per share.

MetLife Inc

The New York-based life insurance company announced that on Sept. 14, it will pay a quarterly cash dividend of 46 cents per common share, which will be flat compared to the previous payment. The quarterly dividend will be paid to shareholders of record Aug. 4. The ex-dividend date is scheduled for Aug. 3.

Based on Wednesday’s closing price of $36.77 per share, the quarterly dividend generates a forward dividend yield of 5%.

MetLife Inc has been distributing dividends for nearly 20 years and increased them by a CAGR of 8% over the past five years.

The company sustains the payment with cash on hand and equivalents of nearly $42 billion and trailing 12-month operating cash flow $14 billion as of the most recent quarter ended on March 30.

The debt-equity ratio stands at 0.26, which is in line with the industry median. GuruFocus has assigned a score of 4 out of 10 to the company's financial strength.

The share price has fallen nearly 27% over the past year, determining a 52-week range of $22.85 to $53.28.

The market capitalization is $33.37 billion, the price-book ratio is 0.48 versus the industry median of 0.99 and the price-sales ratio stands at 0.48 versus the industry median of 0.88.

Wall Street sell-side analysts recommend an overweight rating for the stock and have produced an average target price of $43.17 per share.

CSX Corp

The Jacksonville, Florida-based provider of railroad transportation services announced that on Sept. 15, it will pay a quarterly cash dividend of 26 cents per common share, which will be on par with the prior distribution. The payment will be sent to shareholders of record as of Aug. 31. The ex-dividend date is scheduled for Aug. 28.

Based on Wednesday’s closing price of $69.10 per share, the quarterly dividend generates a forward yield of 1.51%.

CSX Corp has been paying dividends for more than three decades and has increased them at a CAGR of almost 9% over the past five years.

The company finances the payment of the quarterly dividend with $2.5 billion in cash on hand and nearly $5 billion in cash flows from the past 12 months of operating activities.

The share price has fallen by almost 10% in the past year, determining a 52-week range of $46.81 to $80.73.

The stock has a market capitalization of $52.89 billion, a price-book ratio of 4.46 versus the industry median of 0.98 and an enterprise value-Ebitda ratio of 10.61 versus the industry median of 8.87.

Wall Street sell-side analysts issued an overweight recommendation rating for the stock and have established an average target price of $74.71 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 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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