The following large-cap companies announced dividends on Monday. These loyal payers are also doing better than most of their peers and the S&P 500 Index in terms of a higher forward dividend yield.
The Southern Co.
Shares of The Southern Co. (SO, Financial) were flat at $61.59 in after-hours trading on Monday despite the announcement of a quarterly dividend of 62 cents per common share, which is in line with the previous payment.
On Dec. 6, the compny will send the payment out to shareholders of record as of Nov. 18. The ex-dividend date is Nov. 15.
The company produces a forward dividend yield of 4.06% versus the industry median of 3.26% and the S&P 500's yield of 1.90%, based on share prices at close Monday.
The Atlanta, Georgia-based regulated gas and electric utility company has regularly paid quarterly dividends since March 3, 1986.
The trailing 12-month dividend per share averaged 3.4% growth every year over the past five years through Dec. 28, 2018, as indicated by the chart below from GuruFocus.
The utilities company is financially sustaining the payment of the quarterly dividend with $1.4 billion in cash available on hand, plus $6.2 billion in trailing 12-month cash flows from operating activities. Financial statement figures are updated according to the reports prepared for the quarter ended June 30.
The stock has gained 40.23% year to date. The 52-week range is $42.50 to $62.36.
The stock has a market capitalization of $64.38 billion, a price-earnings ratio of 14.53, a price-book ratio of 2.37 and a price-sales ratio of 2.91.
The Peter Lynch earnings line indicates the stock still seems fairly valued despite the strong rise in its share price.
For the majority of analysts in Wall Street, the stock is a hold. The average target price is $59.73.
Eli Lilly
Shares of Eli Lilly and Co. (LLY, Financial) closed down 0.67% at $107.91 on Monday after the company announced a quarterly dividend of 64.5 cents per common share, which is in line with the previous payment.
Eli Lilly and Company will pay the quarterly dividend to its shareholders on Dec. 10. In order to benefit, investors must be on the company’s record not later than Nov. 15. The ex-dividend date is scheduled for Nov. 14.
Based on Monday’s closing prices, the payment produces a forward dividend yield of 2.37% compared to the industry median of 1.54% and the S&P 500’s yield of 1.90%.
The Indianapolis, Indiana-based global drug major has paid quarterly dividends since March 8, 1986.
The trailing 12-month dividend per share increased 2.6% on average every year over the last five years through Dec. 28, 2018.
The U.S. international drug manufacturer is financially sustaining the payment of the quarterly dividends thanks to $2.4 billion cash available on hand as of June 30 and $4.93 billion in cash flows which were generated from the last 12 months through second quarter operations.
The stock price has fallen 6.73% year to date. The 52-week range is $104.17 to $132.13.
The stock has a market capitalization of $104.18 billion, a price-earnings ratio of 13.61, a price-book ratio of 41.05 and a price-sales ratio of 4.6.
Based on the Peter Lynch chart, the stock appears to be trading above its fair value.Â
Consensus amid Wall Street sell-side analysts is for an outperforming share price within 52 weeks as the stock has got an overweight recommendation rating. The average target price is $127.73.
Disclosure: I have no positions in any securities mentioned.
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