Franco-Nevada Corporation (NYSE:FNV) to Issue Dividend Increase – $0.44 Per Share

Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV) announced a quarterly dividend on Monday, January 26th. Stockholders of record on Thursday, March 12th will be given a dividend of 0.44 per share by the basic materials company on Thursday, March 26th. This represents a c) annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, March 12th. This is a 15.8% increase from Franco-Nevada’s previous quarterly dividend of $0.38.

Franco-Nevada has raised its dividend by an average of 0.0%per year over the last three years and has increased its dividend annually for the last 2 consecutive years. Franco-Nevada has a payout ratio of 30.5% meaning its dividend is sufficiently covered by earnings. Research analysts expect Franco-Nevada to earn $4.02 per share next year, which means the company should continue to be able to cover its $1.52 annual dividend with an expected future payout ratio of 37.8%.

Franco-Nevada Trading Up 1.5%

Shares of FNV traded up $3.79 during trading hours on Monday, hitting $259.54. 1,171,617 shares of the stock traded hands, compared to its average volume of 918,734. The business has a fifty day moving average of $215.55 and a 200-day moving average of $198.04. The firm has a market capitalization of $50.04 billion, a PE ratio of 54.41, a price-to-earnings-growth ratio of 1.44 and a beta of 0.48. Franco-Nevada has a 1-year low of $127.20 and a 1-year high of $266.61.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last released its earnings results on Monday, November 3rd. The basic materials company reported $1.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.37 by $0.06. Franco-Nevada had a net margin of 59.48% and a return on equity of 13.94%. The company had revenue of $487.70 million for the quarter, compared to the consensus estimate of $448.51 million. During the same period in the prior year, the company posted $0.80 EPS. The company’s revenue was up 76.9% compared to the same quarter last year. As a group, equities research analysts expect that Franco-Nevada will post 3.09 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Franco-Nevada

A number of institutional investors and hedge funds have recently modified their holdings of FNV. GAMMA Investing LLC grew its holdings in Franco-Nevada by 112.3% during the fourth quarter. GAMMA Investing LLC now owns 121 shares of the basic materials company’s stock worth $25,000 after purchasing an additional 64 shares during the period. Burkett Financial Services LLC bought a new stake in Franco-Nevada in the third quarter valued at approximately $28,000. Private Trust Co. NA bought a new position in shares of Franco-Nevada during the 4th quarter worth approximately $29,000. Stephens Consulting LLC acquired a new position in shares of Franco-Nevada during the 4th quarter worth approximately $36,000. Finally, MTM Investment Management LLC bought a new stake in Franco-Nevada in the 2nd quarter valued at $32,000. 77.06% of the stock is owned by institutional investors.

About Franco-Nevada

Franco-Nevada Corporation is a Toronto-based royalty and streaming company that specializes in securing and managing long-term interests in mining properties. The firm focuses primarily on precious metals, particularly gold, while also holding interests related to silver, copper, platinum-group metals and select base metals. Rather than operating mines directly, Franco-Nevada acquires royalty and streaming agreements that entitle it to a percentage of production or revenue from producing and developing assets in exchange for upfront or staged financing.

The company’s business model centers on providing capital to mining companies in return for a sustained share of production or metal revenue, which can reduce exposure to operating and capital cost risks typical of mine operators.