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Three Long Term Payers Announce Dividend Distributions

Fastenal Co (NASDAQ:FAST), Unum Group (NYSE:UNM) and Omega Healthcare Investors Inc (NYSE:OHI) announced quarterly dividends on Monday, April 13.

These companies are loyal payers, as they have been releasing dividends for more than two decades.

Fastenal Co

The Winona, Minnesota-based wholesale distributor of fasteners and other industrial and construction supplies in North America and internationally announced that on May 26, it will pay a 25 cents quarterly cash dividend per common share, which is on par with the prior payment. The dividend is for shareholders of record April 28. The ex-dividend date is scheduled for April. 27.


Based on Monday's closing share price of $32.27, the quarterly dividend produces a forward dividend yield of 3.08%. The S&P 500 yields 2.16% as of April 13.

Fastenal Co Inc has been paying dividends for almost 30 years and increased them by a compound annual growth rate of 11.7% over the past five years.

The company backs the payment of the quarterly dividend with cash available on hand and cash flows generated by operating activities. As of the most recent quarter, which ended on Dec. 30, 2019, the balance sheet had $175 million in cash and cash equivalents, while the cash flows statement reported $843 million in trailing 12-month operating cash flow.

In the past year, the share price declined by 6.2%, determining a 52-week range of $26.72 to $39.31. The market capitalization is approximately $18.54 billion, the price-earnings ratio is 23.37 versus the industry median of 9.74 and the price-sales ratio is 3.47 versus the industry median of 0.36.

Wall Street sell-side analysts recommend a hold rating for shares of Fastenal Co and have set an average target price of $34 per share.

Unum Group

The Chattanooga, Tennessee-based international life insurance company announced that on May 15, it will pay a quarterly cash dividend of 28.5 cents per common share to shareholders of record as of April 27. The ex-dividend date is scheduled for April 24. The payment is in line with the prior distribution.

Based on Monday's closing share price of $15.75, the quarterly cash dividend produces a forward dividend yield of 7.26%.

Unum Group has been paying dividends for more than three decades. The company has grown the dividends at a CAGR of nearly 12% over the past five years.

The company sustains the payment of the quarterly dividend with cash on hand of approximately $1.4 billion as of the most recent quarter, which ended on Dec. 30, 2019. Activities for the prior 12 months to Dec. 30, 2019 brought in operating cash flow of $1.74 billion.

In the past year, the stock price has decreased by 57.4% determining a 52-week range of $9.58 to $38.29. The stock has a market capitalization of $3.2 billion, a price-earnings ratio of 3.01 versus the industry median of 9.32 and a price-sales ratio of 0.28 versus the industry median of 0.83.

Wall Street sell-side analysts recommend a hold rating for shares of Unum Group and have established an average target price of $24.36 per share.

Omega Healthcare Investors Inc

The Maryland-based real estate investment trust company focusing on assisted living healthcare facilities announced that on May 15, it will pay a 67 cents quarterly cash dividend per common share, which is on par with the prior distribution. The payment will be made for shareholders of record as of April 30. The ex-dividend date is scheduled for April 29.

Based on Monday's closing share price of $33.77, the quarterly dividend generates a forward dividend yield of 7.92%. The S&P 500 offers a dividend yield of 2.16% as of April 13.

Omega Healthcare Investors Inc has been paying dividends for more than two decades. The dividend grew at a CAGR of 5.6% over the past five years.

The company funds the payment of the quarterly dividend with $24.12 million of cash on hand and with trailing twelve-month operating cash flow of $553.75 million as of Dec. 31, 2019.

In the past year, the share price has declined by 8.5%, which has determined a 52-week range of $13.33 to $45.22. The market capitalization currently trades at around $7.7 billion; the price-earnings ratio is 21.37 and the price-sales ratio is 8.1. The industry has a median of 12.66 for the price-earnings ratio and of 5.77 for the price-sales ratio.

Wall Street sell-side analysts recommend an overweight rating for shares of Omega Healthcare Investors Inc and have established an average target price of $32.90 per share.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.