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3 Large Caps Announce Quarterly Dividends

- By Alberto Abaterusso

The following large-cap companies announced quarterly dividends on April 8.

Shares of Ford Motor Co. (NYSE:F) were down 0.11% to $9.29 in after-hours trading following the announcement of a quarterly dividend of 15 cents per share for the second quarter of 2019.

On June 3, the Dearborn, Michigan-based carmaker will pay the dividend to its shareholders of record as of April 24. The ex-dividend date is April 23.


Based on the closing share price of $9.30 on Monday, the distribution, which is in line with the previous payment, leads to a forward dividend yield of 6.45%, topping the industry median of 2.69%. It also beats 95% of the 1,450 companies in its industry.

Ford has paid dividends since 1972, except for 1982 and between 2007 and 2011. The distribution was flat over the last five years.

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The stock has gained 21.6% year to date, outperforming the S&P 500 Index by 6.1%. The closing price on Monday was 25.5% off the 52-week low of $7.41 and 30.6% from the 52-week high of $12.15. The market cap is roughly $37.1 billion, the price-earnings ratio is 10.11, the price-book ratio is 1.05, the price-sales ratio is 0.23 and the enterprise value to earnings before interest, taxes, depreciation and amortization ratio is 28.24.

The Peter Lynch chart suggests Ford is cheap.

Wall Street issued a hold recommendation rating for shares of Ford with an average target price of $9.53, reflecting 2.5% growth from the closing price on Monday.

Shares of NRG Energy Inc. (NRG) were down 0.29% at $41.95 on Monday after the company announced the May 15 payment of a quarterly dividend of 3 cents per share.

NRG Energy will pay the dividend to shareholders of record as of May 1. The ex-dividend date is scheduled for April 30.

The quarterly dividend is in line with the previous distribution. Based on the closing price on Monday, it leads to a forward dividend yield of 0.29%, missing the industry median of 4.11% by 3.82 percentage points.

The Princeton, New Jersey-based energy company has regularly paid a dividend since its reinstatement in 2012. The dividend per share fell 40.9% on average every year over the last three years and declined 29.1% on average every year over the past five years according to GuruFocus.

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Shares of NRG Energy have gained by nearly 6% this year, but are underperforming the S&P 500 Index by 9.6%. The closing share price on Monday was 40.5% above the 52-week low of $29.85 and 4.1% below the 52-week high of $43.66. The stock has a market capitalization of $11.7 billion, a price-earnings ratio of 50.55, a price-sales ratio of 1.28 and an EV-EBITDA ratio of 9.33.

The Peter Lynch suggests the stock is expensive.

Wall Street issued an overweight recommendation rating on shares of NRG Energy. This means the stock is expected to outperform either the industry or the overall market within 52 weeks. The average target price of $46.75 is 11.5% higher than the closing price on Monday.

Shares of Enterprise Products Partners (EPD) were down 0.14% at $29.47 on Monday after the board of directors increased the quarterly dividend by 0.6% to 43.75 cents per share.

Based on Monday's closing price, the dividend the Houston-based oil and gas midstream company will pay on May 13 to its shareholders of record as of April 30 leads to 5.9% forward dividend yield versus the industry median of 8.78%. The ex-dividend date is scheduled for April 29.

Enterprise Products Partners has paid dividends since 1998. The chart below illustrates that the trailing 12 months dividend per share increased 0.8% on average every year over the last five years.

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In addition, GuruFocus warns the company's dividend payout ratio of 90% is too high, indicating it may not be sustainable over the long term.

The stock has climbed nearly 20% this year, topping the S&P 500 Index by 4.3%. The closing price on Monday was 26.3% above the 52-week low of $23.33 and 12.1% below the 52-week high of $33.05. The stock has a market capitalization of $64.4 billion, a price-earnings ratio of 15.47, a price-book ratio of 2.72, a price-sales ratio of 1.77 and an EV-EBITDA ratio of 12.64.

The Peter Lynch chart suggests the stock is slightly overvalued.

Wall Street issued a buy recommendation rating for shares of Enterprise Products Partners with an average target price of $33.73, reflecting 14.5% upside from the closing price on Monday.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.