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Huntsman (HUN) Announces 30% Hike in Quarterly Dividend

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Huntsman Corporation’s (HUN - Free Report) board has announced a 30% increase in its quarterly dividend from 12.5 cents to 16.25 cents per share of common stock, which is payable on Mar 30 to stockholders on record as of Mar 15, 2018.

The board has also authorized the company to repurchase shares worth up to $400 million of shares in common stock in addition to the $50 million remaining under its share repurchase authorization obtained in September 2015.

Notably, Huntsman generated free cash flow of $190 million during the fourth quarter of 2017, up around 42.9% from $133 million a year ago. During 2017, the company repaid debt worth roughly $2.1 billion. Moreover, it had total cash and unused borrowing capacity worth $1,247 million at the end of 2017.  

Huntsman’s shares have gained 10% over the last three months, outperforming 2.5% growth recorded by its industry.

The company’s adjusted earnings were 76 cents per share for the fourth quarter, which topped the Zacks Consensus Estimate of 66 cents.

Total revenues of $2,203 million in the quarter jumped around 15.7% year over year and also beat the Zacks Consensus Estimate of $2,097 million.

The company stated that it will continue investing in operational reliability and organic growth. It expects to generate $450-$650 million of free cash flow in the next few years and will also pursue acquisitions that create value, stronger earnings and growth in its downstream business.

Zacks Rank & Other Stocks to Consider

Huntsman currently carries a Zacks Rank #2 (Buy).

Some other stocks in the basic materials space worth considering are Steel Dynamics, Inc. (STLD - Free Report) , The Mosaic Company (MOS - Free Report) and United States Steel Corporation (X - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Steel Dynamics has an expected long-term earnings growth rate of 12%. Its shares have soared 37.7% over the last six months.

Mosaic has an expected long-term earnings growth rate of 9.5%. Its shares have moved up 43.2% over the past six months.

U.S. Steel has an expected long-term earnings growth rate of 8%. Its shares have rallied 72.2% over the last six months.

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