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

Key Points

• Millicom International Cellular SA has declared a special dividend of $1.25 per share, with a significant dividend yield of 620.0%, payable on October 15th to stockholders of record on October 8th.
• The company's current dividend payout ratio stands at 86.2%, indicating that while it is currently covered by earnings, future payouts may be at risk as projected earnings per share for the next year are $2.84, below the annual dividend of $3.00.
• Millicom reported quarterly earnings of $0.51 per share, missing estimates by $0.03, with a revenue of $1.37 billion compared to analyst expectations of $1.40 billion.

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

Millicom International Cellular has a dividend payout ratio of 86.2% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline. 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 Trading Up 0.9%

Shares of TIGO stock opened at $48.15 on Monday. Millicom International Cellular has a 1 year low of $23.61 and a 1 year high of $50.78. The firm has a fifty day moving average price of $45.93 and a 200-day moving average price of $38.69. The company has a debt-to-equity ratio of 1.59, a current ratio of 0.89 and a quick ratio of 0.87. The company has a market cap of $8.29 billion, a price-to-earnings ratio of 8.49 and a beta of 1.11.

Millicom International Cellular (NASDAQ:TIGO - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The technology company reported $0.51 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.54 by ($0.03). Millicom International Cellular had a net margin of 16.97% and a return on equity of 10.32%. The business had revenue of $1.37 billion for the quarter, compared to the consensus estimate of $1.40 billion. As a group, equities analysts predict that Millicom International Cellular will post 1.91 earnings per share for the current year.

Hedge Funds Weigh In On Millicom International Cellular

Several hedge funds have recently added to or reduced their stakes in the company. Osaic Holdings Inc. grew its holdings in Millicom International Cellular by 1,981.2% during the 2nd quarter. Osaic Holdings Inc. now owns 5,973 shares of the technology company's stock valued at $216,000 after purchasing an additional 5,686 shares during the last quarter. Orion Porfolio Solutions LLC bought a new position in Millicom International Cellular in the 2nd quarter worth about $201,000. Thrivent Financial for Lutherans bought a new position in Millicom International Cellular in the 2nd quarter worth about $203,000. State of Wyoming grew its stake in Millicom International Cellular by 123.4% in the 2nd quarter. State of Wyoming now owns 4,655 shares of the technology company's stock worth $174,000 after acquiring an additional 2,571 shares in the last quarter. Finally, MML Investors Services LLC grew its stake in Millicom International Cellular by 19.7% in the 2nd quarter. MML Investors Services LLC now owns 20,067 shares of the technology company's stock worth $752,000 after acquiring an additional 3,303 shares in the last quarter.

Millicom International Cellular Company Profile

Millicom International Cellular SA provides cable and mobile services in Latin America. It offers mobile services, including mobile data and voice, and short message services; and mobile financial services, such as payments, money transfers, international remittances, savings, real-time loans, and micro-insurance.

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