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Alberto Abaterusso
Alberto Abaterusso
Articles (1468) 

3 Long-Term Payers Declare Dividends

Union Pacific Corp tops the list

May 17, 2019 | About:

The following long-term dividend payers announced quarterly dividends on May 16.

Shares of Union Pacific Corp. (NYSE:UNP) jumped 1.07% to $175.63 on Thursday after the announcement of its 88-cent cash quarterly dividend per share, which is in line with the previous payment.

On June 28, the Omaha, Nebraska-based railroad company will pay the dividend to shareholders of record May 31. The ex-dividend date is scheduled for May 30. This will be the second dividend paid this year.

Based on the closing price on Thursday, the cash quarterly dividend means a forward dividend yield of 2.03%. This compares to the industry median of 2.66% and is ranked lower than 578 out of 1,000 companies operating in the Railroad industry.

Union Pacific has regularly paid quarterly dividends since 1980. The dividend per share increased 5.4% on average every 12 months over the past 60 months through March 29, the date of the previous payment.

Source: GuruFocus.com

Shares of Union Pacific Corp. have risen 27% this year, outperforming the S&P 500 index by 12.32%. The closing share price on Thursday was 37.1% above the 52-week low of $128.08 and 2.5% below the 52-week high of $180.02.

Union Pacific has a market capitalization of $124.32 billion, a price-earnings ratio of 21.47 versus the industry median of 15.94, a price-book ratio of 7.04 versus the industry median of 1.26 and a price-sales ratio of 5.71 versus the industry median of 1.03. The EV-Ebitda ratio is 13.55, compared to the industry median of 11.14.

The Peter Lynch chart suggests the stock is not cheap.

bfb8f780-78a7-11e9-afb7-abf5950cf767.png

Wall Street issued an overweight recommendation rating on shares of Union Pacific Corp. with an average target price of $188.21, which is 7% higher than the closing price on Thursday.

Lear Corp. (NYSE:LEA) closed at $134.22 on Thursday, down 1.54% from the previous close, despite the announcement of a 75-cent cash regular quarterly dividend per common share to be paid on June 26, the second this year, to shareholders of record June 7. The ex-dividend date is scheduled for June 6.

Based on the closing share price on Thursday, the payment, which is in line with the previous one, means a forward dividend yield of 2.2% if held constant versus the industry median of 2.79%.

Lear Corp.’s forward dividend yield is ranked lower than nearly 951 out of 1,413 companies that operate in the Auto Parts industry.

Headquartered in Southfield, Michigan, the provider of auto parts to international automotive companies has paid dividends since 2011. The trailing 12-month dividend per share increased 7.6% on average every 52 weeks over the last five years through March 20, which is the date of the last quarterly payment.

Source: GuruFocus.com

The stock has gained 9.3% so far this year but underperformed the S&P 500 index by 5.5%. The closing price on Thursday was 17.3% above the 52-week low of $114.45 and 53.7% from the 52-week high of $206.36.

Lear Corp.’s market cap is $8.36 billion, the price-earnings ratio is 8.57 versus the industry median of 13.25, the price-book ratio is 2 versus the industry median of 1.26 and the price-sales ratio is 0.43 compared to the industry median of 0.63.

The Peter Lynch chart suggests Lear Corp. is not expensive.

f3353710-78a7-11e9-965f-935bc000a254.png

Wall Street issued an overweight recommendation rating for shares of Lear Corp., with an average target price of $172.95, reflecting 28.9% growth from the closing price on Thursday.

Shares of Sealed Air Corp. (NYSE:SEE) were up 0.4% at $42.2688 in after-hours trading on Thursday following the announcement of a 16-cent cash quarterly dividend per common share. The dividend, which is in line with the previous one, will be paid on June 21. This is the second payment in 2019.

The record date is June 7, and the ex-dividend date is scheduled for June 6.

Based on Thursday's closing price of $42.1 per share, the Charlotte, North Carolina-based international provider of packaging solutions and containers has a forward dividend yield of 1.52% versus the industry median of 2.08%.

The forward dividend yield is ranked lower than 204 out of 316 companies that operate in the Packaging & Containers industry.

Sealed Air has paid dividends from March 1988 to June 1989 and from March 2006 to March 2019. The yearly dividend per share was flat over the last five years.

Source: GuruFocus.com

The stock is up 21% this year, outperforming the S&P 500 index by 6%. The closing price on Thursday was 39.3% above the 52-week low of $30.22 and 11.9% below the 52-week high of $47.13. The stock has a market capitalization of $6.56 billion, a price-earnings ratio of 14.72 versus the industry median of 18.27 and a price-sales ratio of 1.41 versus the industry median of 0.86.

Below Peter Lynch chart suggests that the stock may be slightly overvalued.

1d075c90-78a8-11e9-b160-69d11c4dc7f7.png

Wall Street issued an overweight recommendation rating for shares of Sealed Air Corp. The average target price is $47.43, which is 12.7% higher than the share price of $42.10 at close on Thursday.

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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