LONDON, UK / ACCESSWIRE / December 12, 2017 / Active-Investors has a free review on MDU Resources Group, Inc. (NYSE: MDU) following the Company's announcement that it will begin trading ex-dividend on December 13, 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 December 12, 2017. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on MDU:
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Dividend Declared
On November 16, 2017, MDU Resources' Board of Directors increased the Company's quarterly common stock dividend to $0.1975 per share, for an annualized dividend of $0.79 per share. The previous quarterly dividend was $0.1925 per share.
MDU Resources' indicated dividend represents a yield of 2.81%, which is more than double compared to the average dividend yield of 1.17% for the Industrial Goods sector. This is the 27th consecutive year that MDU Resources has increased its common stock dividend. Of the US-listed, dividend-paying companies, fewer than 90 have increased their stock dividend as many consecutive years as MDU Resources.
Dividend Insights
MDU Resources has a dividend payout ratio of 66.4%, which indicates that the Company spends approximately $0.66 for dividend distribution out of 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, MDU Resources is forecasted to report earnings of $1.32 per share for the next year, which is substantially above the Company's annualized dividend of $0.79 per share.
For the nine months ended September 30, 2017, MDU Resources generated net operating cash flow of $272 million compared to $276 million in the prior year's same period. 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 Developments for MDU Resources
On November 21, 2017, MDU Resources announced that its Board of Directors has directed senior management to explore reorganization to a holding company structure. The purpose of a potential reorganization would be to make Montana-Dakota Utilities Co. and Great Plains Natural Gas Co., which currently are divisions of MDU Resources, into subsidiaries of the holding company.
MDU Resources noted that it will submit regulatory filings in 2018 in required jurisdictions. If MDU Resources proceeds with the reorganization which is subject to regulatory and other approvals, it expects the transition to be effective January 01, 2019.
As part of the reorganization, and as required by law, each outstanding share of MDU Resources' common stock would be converted automatically on a one-for-one basis into a share of common stock of the new holding company. The stock would continue to trade on the New York Stock Exchange under the symbol MDU.
About MDU Resources
MDU Resources Group, a member of the S&P MidCap 400 index and the S&P High-Yield Dividend Aristocrats index, is ‘Building a Strong America®' by providing essential products and services through its regulated energy delivery and construction materials and services businesses.
Stock Performance Snapshot
December 11, 2017 - At Monday's closing bell, MDU Resources' stock was slightly down 0.64%, ending the trading session at $27.96.
Volume traded for the day: 1.38 million shares.
Stock performance in the last month – up 5.35%; previous three-month period – up 2.64%; and past six-month period – up 2.98%
After yesterday's close, MDU Resources' market cap was at $5.46 billion.
Price to Earnings (P/E) ratio was at 23.30.
The stock has a dividend yield of 2.83%.
The stock is part of the Industrial Goods sector, categorized under the General Building Materials industry.
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