Huntsman raises dividend
On February 23, 2018, Huntsman Corporation (HUN) increased its quarterly dividend by 30.0% and declared a dividend of $0.1625 per share. Annually, this equals $0.65 per share.
Investors who hold HUN stock as of March 9, 2018, are eligible for this dividend, which is expected to be payable on March 30, 2018.
As a result of the dividend increase, HUN’s dividend yield increased to ~1.9%. Among its peers, Eastman Chemical (EMN), Westlake Chemical (WLK), and Celanese (CE) had dividend yields of ~2.2%, 0.76%, and ~1.8%, respectively.
HUN’s dividend yield is very close to the yields generated from one-year Treasury bonds, making it an alternative investment option for investors looking for higher dividend yields.
Update on Huntsman’s stock price movement
On this news, Huntsman (HUN) gained 2.6% and closed at $33.64 for the week ended February 23, 2018. Huntsman traded 5.9% above the 100-day moving average price of $31.76, indicating a prevailing upward trend for the stock.
Analysts appear to be more bullish on the stock and have projected a target price of $39.90. This implies a return potential of 18.7% from the closing price on February 23, 2018.
HUN’s 14-day relative strength index (or RSI) of 55 indicates that the stock is neither oversold nor overbought. HUN’s short interest as a percentage of outstanding shares has declined to 2.0% from 2.4%.
Investors can indirectly hold HUN via the First Trust Materials AlphaDEX ETF (FXZ). FXZ invested 3.4% of its portfolio in Huntsman on February 23, 2018.