uploads///Dividend yield F

HollyFrontier Has Slumped 18% in Q2, Dividend Yield Touches 3.3%

By

Jun. 18 2019, Updated 2:59 p.m. ET

HollyFrontier’s dividend per share

HollyFrontier (HFC) stock has fallen 18% this quarter due to the company’s weak first-quarter earnings and oil spreads narrowing, boosting its dividend yield. HollyFrontier, whose dividend payments have been steady for the past few years, paid a dividend of $0.33 per share on June 5. It was announced on May 8.

Article continues below advertisement

HollyFrontier’s dividend yield

Since Q2 2018, HollyFrontier’s dividend yield has risen to 3.3% from 2.2%, driven by its stock falling 41%. In Q1 2019, HFC returned $57 million through dividends and $78 million through stock repurchases. During the company’s first-quarter earnings call, CFO and executive VP Richard Lawrence Voliva said, “So we are evaluating the dividend in light of the additions we’ve made particularly to our Lubes and Specialty businesses. We’re really early in this process, frankly. I think we’re going to have a better idea as we integrate Sonneborn over the next couple of quarters. So to George’s point, I think certainly in the near term, we’d expect to continue to return excess cash of over $500 million in the form of buybacks.”

Peers’ dividend yields

Delek US Holdings’s (DK) dividend yield is 3.2%, lower than HollyFrontier’s. However, some peers’ yields are higher: Valero Energy’s (VLO), Phillips 66’s (PSX), Marathon Petroleum’s (MPC), and PBF Energy’s (PBF) dividend yields are 4.7%, 4.2%, 4.4%, and 5.0%, respectively.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.