24 Feb

Why DuPont’s Dividend Yield Is Falling

WRITTEN BY Peter Neil

DuPont’s dividend yield

A dividend yield is a measure of a company’s annual dividend per share relative to its price per share. It indicates how much cash an investor is getting for every dollar invested in a company’s equity. A high dividend yield is a good sign, as it provides investors with stable income.

On February 23, 2017, DuPont stock closed at $79.59. With DuPont’s declared 1Q17 dividend of $0.38 per share, DuPont’s current dividend yield stands at 1.9%. Peers Dow Chemical (DOW), LyondellBasell (LYB), and Eastman Chemical (EMN) have current dividend yields of 2.9%, 3.7%, and 2.5%, respectively.

Why DuPont’s Dividend Yield Is Falling

Since 2012, DuPont’s dividend yield has been falling. The decline in the dividend yield is primarily due to the combination of declining dividends and an increase in DuPont’s stock price. DD’s current dividend yield of 1.9% is still better than the yield on the one-year Treasury bill.

Dividend payout

Dividend payout can be calculated by dividing annual dividend per share by annual earnings per share (or EPS) and is expressed in percentage. This metric shows what percentage of its earnings the company is paying out as a dividend.

DuPont’s payout has been on a declining trend since 2011 with the exception of 2015. DuPont had a dividend payout ratio of 140.5% in 2012, and it dropped to 53.3% in 2016.

Investors can get exposure to DuPont by investing in the ProShares Ultra Basic Materials (UYM), which invests 8.1% of its holdings in DuPont as of February 23, 2017. In the next part, we’ll look into the latest analyst ratings for DuPont.

Latest articles

German chip maker Infineon Technologies has reportedly raised 1.55 billion euros (~$1.74 billion) in capital by selling its shares to fund its acquisition of Cypress Semiconductor (CY). Infineon has sold ~113 million new shares at 13.70 euros each.

As of June 18, Dunkin’ Brands (DNKN) was trading at $80.07, an 8.9% rise since reporting its first-quarter earnings on May 2. Also, DNKN was trading at a premium of 29.8% from its 52-week low of $61.69 and a discount of 1.6% from its 52-week high of $81.40.

19 Jun

Are Lower Oil Prices Weighing on ExxonMobil Stock?

WRITTEN BY Maitali Ramkumar

ExxonMobil (XOM) stock has fallen 7.1% in the second quarter so far. Let's review ExxonMobil's stock performance in comparison to oil price changes and equity market movements in the quarter.

19 Jun

As Facebook Unveils Libra, MSFT and CRM Join a Blockchain Group

WRITTEN BY Mayur Sontakke, CFA, FRM

On June 18, Facebook (FB) launched Libra, its own cryptocurrency. On the same day, CoinDesk published another piece of blockchain news that didn’t receive as much fanfare as Facebook’s Libra news. Was the timing a coincidence? We think not.

Uber Technologies (UBER) has picked Melbourne as another test site for its flying taxi service known as UberAir. The Australian city is the first international test site Uber has chosen for its flying taxi service. The addition of Melbourne brings the number of test locations Uber has picked for its UberAir service to three.

Lyft (LYFT) and Uber Technologies (UBER) are pushing back against California legislation that would require them to recognize their drivers as employees rather than independent contractors. The legislation would require companies like Lyft to give their drivers the compensation and benefits spelled out under California’s employment regulations.

172.31.16.229