uploads/2018/02/Part-6-HUN-1.png

Huntsman Corporation Raises Its Cash Dividend by 30%

By

Updated

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.

Article continues below advertisement

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.

Advertisement

More From Market Realist