Franco-Nevada Corporation (NYSE:FNV) to Issue $0.44 Quarterly Dividend

Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV) announced a quarterly dividend on Tuesday, August 11th. Stockholders of record on Thursday, September 10th will be paid a dividend of 0.44 per share by the basic materials company on Thursday, September 24th. This represents a c) dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Thursday, September 10th.

Franco-Nevada has decreased its dividend by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 2 years. Franco-Nevada has a dividend payout ratio of 35.3% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Franco-Nevada to earn $8.80 per share next year, which means the company should continue to be able to cover its $1.76 annual dividend with an expected future payout ratio of 20.0%.

Franco-Nevada Price Performance

Shares of FNV traded down $3.36 during trading hours on Wednesday, hitting $237.38. 331,588 shares of the company were exchanged, compared to its average volume of 853,646. The company has a market capitalization of $45.78 billion, a PE ratio of 33.43, a PEG ratio of 2.03 and a beta of 0.35. The firm has a fifty day simple moving average of $215.32 and a 200-day simple moving average of $235.65. Franco-Nevada has a one year low of $173.39 and a one year high of $285.67.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last announced its earnings results on Tuesday, August 11th. The basic materials company reported $1.81 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.95 by ($0.14). Franco-Nevada had a return on equity of 18.10% and a net margin of 65.12%.The company had revenue of $580.90 million for the quarter, compared to analyst estimates of $616.66 million. During the same period last year, the firm earned $1.24 earnings per share. The firm’s revenue for the quarter was up 57.3% on a year-over-year basis. Sell-side analysts expect that Franco-Nevada will post 8.23 EPS for the current year.

Institutional Trading of Franco-Nevada

Hedge funds have recently made changes to their positions in the stock. PFG Investments LLC lifted its holdings in shares of Franco-Nevada by 0.6% during the 4th quarter. PFG Investments LLC now owns 7,159 shares of the basic materials company’s stock worth $1,484,000 after acquiring an additional 46 shares during the period. Composition Wealth LLC increased its stake in Franco-Nevada by 0.8% in the fourth quarter. Composition Wealth LLC now owns 6,108 shares of the basic materials company’s stock valued at $1,266,000 after acquiring an additional 49 shares during the last quarter. Clark Capital Management Group Inc. raised its position in Franco-Nevada by 1.0% during the fourth quarter. Clark Capital Management Group Inc. now owns 5,054 shares of the basic materials company’s stock valued at $1,048,000 after purchasing an additional 50 shares in the last quarter. Syon Capital LLC boosted its holdings in shares of Franco-Nevada by 2.1% in the 4th quarter. Syon Capital LLC now owns 2,443 shares of the basic materials company’s stock valued at $506,000 after purchasing an additional 51 shares in the last quarter. Finally, Guardian Partners Inc. boosted its holdings in shares of Franco-Nevada by 3.2% in the 4th quarter. Guardian Partners Inc. now owns 1,692 shares of the basic materials company’s stock valued at $351,000 after purchasing an additional 52 shares in the last quarter. 77.06% of the stock is owned by hedge funds and other 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.