Huntsman Corporation to Issue Quarterly Dividend of $0.09 (NYSE:HUN)

Key Points

• Huntsman declared a quarterly dividend of $0.0875 per share, payable September 30 to shareholders of record on September 15. The dividend equates to approximately $0.35 annually and a 2.9% yield.
• The dividend may be financially strained: Huntsman’s payout ratio is already 134.6%, while analysts expect only $0.08 in earnings per share next year, implying a projected payout ratio of 437.5%.
• Huntsman reported a quarterly loss of $0.20 per share, though it beat estimates of a $0.23 loss, and generated $1.42 billion in revenue. Shares opened at $12.04, with a 52-week range of $7.30 to $16.08.

Huntsman Corporation (NYSE:HUN - Get Free Report) announced a quarterly dividend on Thursday, July 30th. Shareholders of record on Tuesday, September 15th will be paid a dividend of 0.0875 per share by the basic materials company on Wednesday, September 30th. This represents a c) annualized dividend and a yield of 2.9%. The ex-dividend date is Tuesday, September 15th.

Huntsman has raised its dividend by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 4 years. Huntsman has a payout ratio of 134.6% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Huntsman to earn $0.08 per share next year, which means the company may not be able to cover its $0.35 annual dividend with an expected future payout ratio of 437.5%.

Huntsman Price Performance

NYSE:HUN opened at $12.04 on Friday. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.75 and a current ratio of 1.27. The company has a 50-day moving average of $12.75 and a 200-day moving average of $12.82. Huntsman has a 52 week low of $7.30 and a 52 week high of $16.08. The company has a market capitalization of $2.11 billion, a price-to-earnings ratio of -6.27 and a beta of 0.69.

Huntsman (NYSE:HUN - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The basic materials company reported ($0.20) EPS for the quarter, topping analysts' consensus estimates of ($0.23) by $0.03. Huntsman had a negative net margin of 5.83% and a negative return on equity of 4.60%. The firm had revenue of $1.42 billion during the quarter, compared to analysts' expectations of $1.39 billion. During the same quarter last year, the company earned ($0.11) earnings per share. The company's revenue for the quarter was up .7% compared to the same quarter last year. As a group, equities research analysts anticipate that Huntsman will post -0.22 earnings per share for the current fiscal year.

About Huntsman

Huntsman Corporation is a global manufacturer and marketer of specialty chemicals with headquarters in The Woodlands, Texas. Founded in 1970 by entrepreneur Jon Huntsman Sr., the company has grown through strategic acquisitions and organic expansion to establish a broad portfolio of products serving diverse end markets. Huntsman maintains a presence in more than 30 countries, operating manufacturing facilities across North America, Europe, Asia-Pacific, Latin America and the Middle East.

The company organizes its operations into several core business segments, including Polyurethanes, Performance Products, Advanced Materials, and Textile Effects.

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