We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Putting Murphy's (MUSA) Dividend Hike Under the Scanner
Read MoreHide Full Article
Murphy USA (MUSA - Free Report) recently got approval from its board of directors to increase the quarterly dividend by a penny (or 3.2%) to 32 cents per share to $1.28 per share on an annualized basis. The new payout will be made on Sep 8 to its common shareholders of record on Aug 30.
The macro environment for Refining & Marketing operators like MUSA remains robust, thanks to sky-high fuel margins and improved fundamentals that should aid long-term growth. This positive backdrop, together with Murphy USA’s strong balance sheet and healthy cash flows, allowed the Zacks Rank #1 (Strong Buy) company to reward investors with a dividend hike last week.
While stock buyback continues to be MUSA’s preferred tool to distribute cash, the company’s policy dictates that it ploughs back around 4% of its capital in paying dividends. Agreed, their current dividend yield is very low at less than 1% but it is well protected with a payout ratio of just 6. As a result, the dividend not only looks quite sustainable but also leaves enough scope for future dividend increases. Investors should note that Murphy USA was one of the very few enterprises to actually initiate their first dividends during the coronavirus crisis of 2020 when countless others were being cut. (Check Murphy USA’s dividend history here)
Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States. The El Dorado, AR-based company, in its current form, came into existence following the 2013 spin-off of Murphy Oil Corporation’s downstream business into a separate, independent and publicly-traded entity. Murphy USA markets refined products through a chain of retail stations, almost all of which are located near a Walmart superstore, primarily in the Southeast, Southwest and Midwest United States.
3 Energy Dividend Payers that Offer Better Yields Than MUSA
If you think Murphy USA’s dividend yield is too modest, here are some better choices.
HF Sinclair Corporation (DINO - Free Report) : A producer and marketer of gasoline, diesel fuel and other specialty products, HF Sinclair pays out a quarterly dividend of 40 cents ($1.60 annualized) per share that gives it a 3.05% yield at the current stock price. The company’s payout ratio is 21, with a five-year dividend growth rate of 3.62%. (Check HF Sinclair’s dividend history here)
DINO is valued at some $11.4 billion. The Zacks Consensus Estimate for HF Sinclair’s 2022 earnings has been revised 46.8% upward over the past 60 days. The downstream operator has a trailing four-quarter earnings surprise of roughly 710.1%, on average. DINO shares have gained 75.5% in a year.
ExxonMobil (XOM - Free Report) : ExxonMobil is one of the largest publicly traded oil and gas companies in the world, which participates in every aspect related to energy — from oil production to refining and marketing. XOM’s dividend of 88 cents per share ($3.52 annualized) represents a 3.74% yield. ExxonMobil’s payout ratio is 36, with a five-year dividend growth rate of 2.80%. (Check ExxonMobil’s dividend history here)
ExxonMobil is valued at some $391.8 billion. The Zacks Consensus Estimate for XOM’s 2022 earnings has been revised 23.6% upward over the past 60 days. ExxonMobil, headquartered in Irving, TX, has a trailing four-quarter earnings surprise of roughly 1.6%, on average. XOM shares have gained 78.5% in a year.
Valero Energy (VLO - Free Report) : Among all the independent refiners, Valero offers the most diversified refinery base with a capacity of 3.1 million barrels per day in its 15 refineries located throughout the United States, Canada and the Caribbean. VLO pays out a quarterly dividend of 98 cents ($3.92 annualized) per share which gives it a 3.29% yield at the current stock price. The company’s payout ratio is 23, with a five-year dividend growth rate of 7.23%. (Check Valero Energy’s dividend history here)
Valero is valued at some $46.9 billion. The Zacks Consensus Estimate for VLO’s 2022 earnings has been revised 56.9% upward over the past 60 days. The refining giant has a trailing four-quarter earnings surprise of roughly 33.5%, on average. VLO shares have gained 93.5% in a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Putting Murphy's (MUSA) Dividend Hike Under the Scanner
Murphy USA (MUSA - Free Report) recently got approval from its board of directors to increase the quarterly dividend by a penny (or 3.2%) to 32 cents per share to $1.28 per share on an annualized basis. The new payout will be made on Sep 8 to its common shareholders of record on Aug 30.
The macro environment for Refining & Marketing operators like MUSA remains robust, thanks to sky-high fuel margins and improved fundamentals that should aid long-term growth. This positive backdrop, together with Murphy USA’s strong balance sheet and healthy cash flows, allowed the Zacks Rank #1 (Strong Buy) company to reward investors with a dividend hike last week.
You can see the complete list of today’s Zacks #1 Rank stocks here.
While stock buyback continues to be MUSA’s preferred tool to distribute cash, the company’s policy dictates that it ploughs back around 4% of its capital in paying dividends. Agreed, their current dividend yield is very low at less than 1% but it is well protected with a payout ratio of just 6. As a result, the dividend not only looks quite sustainable but also leaves enough scope for future dividend increases. Investors should note that Murphy USA was one of the very few enterprises to actually initiate their first dividends during the coronavirus crisis of 2020 when countless others were being cut. (Check Murphy USA’s dividend history here)
Murphy USA Inc. Dividend Yield (TTM)
Murphy USA Inc. dividend-yield-ttm | Murphy USA Inc. Quote
Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States. The El Dorado, AR-based company, in its current form, came into existence following the 2013 spin-off of Murphy Oil Corporation’s downstream business into a separate, independent and publicly-traded entity. Murphy USA markets refined products through a chain of retail stations, almost all of which are located near a Walmart superstore, primarily in the Southeast, Southwest and Midwest United States.
3 Energy Dividend Payers that Offer Better Yields Than MUSA
If you think Murphy USA’s dividend yield is too modest, here are some better choices.
HF Sinclair Corporation (DINO - Free Report) : A producer and marketer of gasoline, diesel fuel and other specialty products, HF Sinclair pays out a quarterly dividend of 40 cents ($1.60 annualized) per share that gives it a 3.05% yield at the current stock price. The company’s payout ratio is 21, with a five-year dividend growth rate of 3.62%. (Check HF Sinclair’s dividend history here)
DINO is valued at some $11.4 billion. The Zacks Consensus Estimate for HF Sinclair’s 2022 earnings has been revised 46.8% upward over the past 60 days. The downstream operator has a trailing four-quarter earnings surprise of roughly 710.1%, on average. DINO shares have gained 75.5% in a year.
ExxonMobil (XOM - Free Report) : ExxonMobil is one of the largest publicly traded oil and gas companies in the world, which participates in every aspect related to energy — from oil production to refining and marketing. XOM’s dividend of 88 cents per share ($3.52 annualized) represents a 3.74% yield. ExxonMobil’s payout ratio is 36, with a five-year dividend growth rate of 2.80%. (Check ExxonMobil’s dividend history here)
ExxonMobil is valued at some $391.8 billion. The Zacks Consensus Estimate for XOM’s 2022 earnings has been revised 23.6% upward over the past 60 days. ExxonMobil, headquartered in Irving, TX, has a trailing four-quarter earnings surprise of roughly 1.6%, on average. XOM shares have gained 78.5% in a year.
Valero Energy (VLO - Free Report) : Among all the independent refiners, Valero offers the most diversified refinery base with a capacity of 3.1 million barrels per day in its 15 refineries located throughout the United States, Canada and the Caribbean. VLO pays out a quarterly dividend of 98 cents ($3.92 annualized) per share which gives it a 3.29% yield at the current stock price. The company’s payout ratio is 23, with a five-year dividend growth rate of 7.23%. (Check Valero Energy’s dividend history here)
Valero is valued at some $46.9 billion. The Zacks Consensus Estimate for VLO’s 2022 earnings has been revised 56.9% upward over the past 60 days. The refining giant has a trailing four-quarter earnings surprise of roughly 33.5%, on average. VLO shares have gained 93.5% in a year.