Dividend Coverage: The Power Management Company has a Dividend Yield of 3.01%; Will Trade Ex-Dividend on November 2, 2017
LONDON, UK / ACCESSWIRE / November 1, 2017 / Pro-Trader Daily takes a closer look at Eaton Corp. PLC (NYSE: ETN) as the Company's stock will begin trading ex-dividend on November 02, 2017. To capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on November 01, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:
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Dividend Declared
On October 24, 2017, Eaton's Board of Directors declared a quarterly dividend of $0.60 per ordinary share. The dividend is payable November 17, 2017, to shareholders of record at the close of business on November 03, 2017. For US tax purposes, Eaton estimates that all of the 2017 dividend will be treated as a return of capital to shareholders, to the extent of the shareholder's tax basis in the shares.
Eaton's indicated dividend represents a yield of 3.01%, which is more than double the average dividend yield of 1.15% for the Industrial Goods sector. Eaton has paid dividends on its shares every year since 1923.
Dividend Insights
Eaton has a dividend payout ratio of 52.3%, which indicates that the Company distributes approximately $0.52 for every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, Eaton is estimated to report earnings of $5.11 for the next year, which is more than double compared to the Company's annualized dividend of $2.40 per share.
As of June 30, 2017, Eaton's cash and cash equivalents totaled $312 million compared to $543 million of cash as on December 31, 2016. The Company's operating cash flow in the second quarter 2017 was $574 million. Eaton also repurchased $210 million of its shares in the reported quarter, making the Company's H1 2017 repurchases a total of $465 million. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.
Recent Development for Eaton
On October 10, 2017, Eaton announced that its facilities have returned to operation following the recent hurricanes in Puerto Rico. Eaton operates four facilities in Puerto Rico, manufacturing principally low- and medium-voltage circuit protection components. The Company's total employee population at the plants is approximately 1,500.
Eaton estimates the recent natural disasters, including Hurricanes Maria, Irma, and Harvey, as well as the earthquake in Mexico City, will impact Q3 2017 net income and operating earnings per share by negative $0.03.
About Eaton
Eaton is a power management Company with 2016 sales of $19.7 billion. Founded in 1916 and based in Dublin, Ireland, the Company provides energy-efficient solutions that help its customers effectively manage electrical, hydraulic and mechanical power more efficiently, safely and sustainably.
Eaton has approximately 96,000 employees and sells products to customers in more than 175 countries.
Stock Performance
On Tuesday, October 31, 2017, the stock closed the trading session at $80.02, climbing 1.00% from its previous closing price of $79.23. A total volume of 4.96 million shares have exchanged hands, which was higher than the 3-month average volume of 2.58 million shares. Eaton's stock price rallied 7.99% in the last three months, 4.83% in the past six months, and 25.48% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 19.27%. The stock is trading at a PE ratio of 18.32 and has a dividend yield of 3.00%. At Tuesday's closing price, the stock's net capitalization stands at $35.90 billion.
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