Huntsman’s fourth quarter dividend
On November 6, 2017, Huntsman (HUN) announced that it’s all set to pay its 4Q17 dividend on December 29, 2017. The dividend will be paid to shareholders of record as of December 15, 2017. HUN will pay a dividend of $0.125 per share, which implies no change in its dividend rate over the previous year.
As of November 10, 2017, HUN’s current dividend rate translates into a dividend yield of 1.6%, which is marginally above the yield generated from the one-year treasury bonds. The steep increase in HUN’s stock price during 2017 has caused a drop in HUN’s dividend yield. But it remains to be seen if HUN will increase its dividend rate to improve a dividend yield that could attract long-term investors.
HUN’s stock performance
Huntsman stock fell 2.1% and closed at $31.06 for the week ended November 10, underperforming the First Trust Materials AlphaDEX Fund (FXZ), which fell 1.5% during the same period. The stock price has not affected its upward trend much. The stock is trading 13.2% above its 100-day moving average price of $27.44.
The stock has returned 62.8% YTD (year-to-date). HUN’s 14-day RSI (relative strength index) score of 60 indicates that the stock is neither oversold nor overbought. Analysts appear to be bullish on the stock with a consensus target price of HUN at $37.10, or 19.4% above the stock’s closing price as of November 10, 2017.
Notably, investors invested in FXZ will have an indirect exposure to HUN. FXZ has 2.2% of its portfolio in Huntsman, and its holdings also include Eastman Chemical (EMN), Albemarle (ALB), and FMC (FMC), which had weights of 2.6%, 2.0%, and 2.0%, respectively, on November 10.