LONDON, UK / ACCESSWIRE / October 5, 2017 / Pro-Trader Daily takes a closer look at Universal Corp. (NYSE: UVV) as the Company’s stock will begin trading ex-dividend on October 06, 2017. In order 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 October 05, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:
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On August 03, 2017, George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation, announced that the Company’s Board of Directors declared a quarterly dividend of $0.54 per share on the common shares of the Company, payable November 06, 2017, to common shareholders of record at the close of business on October 10, 2017.
Universal Corp.’s indicated dividend represents a yield of 3.72%, substantially higher compared to the average dividend yield of 1.78% for the Consumer Goods sector. The Company has raised dividend for 45 straight years.
Universal Corp. has a dividend payout ratio of 151.41%, which indicates that the Company distributes approximately $1.51 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. As reflected from the payout ratio, the Company has to either grow its earnings substantially or to reduce the dividend payment to sustain the dividend payment in the long-term.
Universal Corp. reported net income of $3.6 million, or $0.14 per diluted share, for Q1 FY18 ended on June 30, 2017. Those results were up $9.1 million compared to a net loss of $5.5 million, or $0.40 per diluted share, for Q1 FY17. The Company’s results reflect that the performance is improving and it might be able to manage the dividend payout ratio in the coming quarters.
As of June 30, 2017, Universal Corp.’s cash and equivalents totaled $128.61 million compared to $316.09 million as on June 30, 2016. The Company’s net cash utilized through operating activities for the three months ended June 30, 2017, totaled $117.08 million compared to operating cash flow provided by the Company of $16.06 million for the year-ago same period. The Company’s financial position indicates its ability to absorb any fluctuations in earnings and cash flow in the short-term, but the Company may have to reduce its cash burn or improve operating performance to sustain its dividend distribution for a long period.
About Universal Corporation
Headquartered in Richmond, Virginia, Universal Corp. is the leading global leaf tobacco supplier and conducts business in more than 30 countries. Its revenues for the fiscal year ended March 31, 2017, were $2.1 billion.
On Wednesday, October 04, 2017, the stock closed the trading session at $57.15, slightly down 0.52% from its previous closing price of $57.45. A total volume of 662.15 thousand shares have exchanged hands, which was higher than the 3-month average volume of 166.86 thousand shares. Universal’s stock price advanced 0.53% in the last one month. The stock has a dividend yield of 3.78% and currently has a market cap of $1.45 billion.
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