Millicom International Cellular SA Declares Special Dividend of $1.25 (NASDAQ:TIGO)

Key Points

• Millicom declared a special dividend of $1.25 per share, payable April 15 to investors of record on April 8, with an implied yield reported at 620% and an ex-dividend date of April 8.
• The dividend's sustainability is questionable: the company has a current payout ratio of 86.2%, but analysts forecast next-year EPS of $2.84, implying a projected payout ratio of about 105.6% against a $3.00 annual dividend.
• Millicom recently posted strong quarterly results—$1.50 EPS (beat) and 15.7% revenue growth to $1.65B—and trades at a market cap of $13.46B with a P/E of 10.15.

Millicom International Cellular SA (NASDAQ:TIGO - Get Free Report) announced a special dividend on Wednesday, May 21st. Investors of record on Wednesday, April 8th will be given a dividend of 1.25 per share by the technology company on Wednesday, April 15th. This represents a yield of 620.0%. The ex-dividend date is Wednesday, April 8th.

Millicom International Cellular has a payout ratio of 86.2% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Equities research analysts expect Millicom International Cellular to earn $2.84 per share next year, which means the company may not be able to cover its $3.00 annual dividend with an expected future payout ratio of 105.6%.

Millicom International Cellular Price Performance

Shares of TIGO opened at $79.64 on Monday. The stock has a market cap of $13.46 billion, a P/E ratio of 10.15 and a beta of 0.87. Millicom International Cellular has a 1 year low of $26.35 and a 1 year high of $79.72. The stock's 50-day moving average price is $69.37 and its two-hundred day moving average price is $57.63. The company has a current ratio of 0.88, a quick ratio of 0.86 and a debt-to-equity ratio of 1.81.

Millicom International Cellular (NASDAQ:TIGO - Get Free Report) last announced its quarterly earnings results on Thursday, February 26th. The technology company reported $1.50 EPS for the quarter, beating analysts' consensus estimates of $1.05 by $0.45. Millicom International Cellular had a return on equity of 17.07% and a net margin of 22.62%.The company had revenue of $1.65 billion during the quarter, compared to analysts' expectations of $1.49 billion. During the same period in the prior year, the business posted $0.18 EPS. Millicom International Cellular's revenue was up 15.7% on a year-over-year basis. On average, equities analysts predict that Millicom International Cellular will post 1.91 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in TIGO. Nisa Investment Advisors LLC acquired a new position in Millicom International Cellular in the 3rd quarter worth $4,010,000. State of Alaska Department of Revenue acquired a new stake in shares of Millicom International Cellular in the 3rd quarter valued at about $970,000. Plato Investment Management Ltd acquired a new stake in shares of Millicom International Cellular in the 3rd quarter valued at about $875,000. JPMorgan Chase & Co. lifted its holdings in shares of Millicom International Cellular by 348.9% in the third quarter. JPMorgan Chase & Co. now owns 6,459,716 shares of the technology company's stock valued at $313,555,000 after purchasing an additional 5,020,602 shares in the last quarter. Finally, Marathon Asset Management Ltd acquired a new position in shares of Millicom International Cellular during the third quarter worth about $47,789,000.

About Millicom International Cellular

Millicom International Cellular SA, trading under the TIGO brand, is a Luxembourg‐headquartered telecommunications and media company that provides a range of mobile, cable broadband, digital television and enterprise services. Through its integrated infrastructure, the company delivers voice and data connectivity, high‐speed internet access and pay‐television packages to millions of customers, supported by ongoing investments in network coverage and capacity.

Established in 1990 by Swedish investor Jan Stenbeck, Millicom has grown into a multi‐regional operator focused primarily on Central and South America.

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