Murphy USA Inc. (NYSE:MUSA) Announces Dividend Increase - $0.65 Per Share

Key Points

• Murphy USA raised its quarterly dividend 1.6% to $0.65 per share, payable September 3 to shareholders of record on August 24. The annualized dividend is $2.56, with an approximately 0.5% yield.
• The dividend appears well covered, with a current payout ratio of 9.2%; analysts expect an 8.7% future payout ratio based on projected earnings of $29.58 per share.
• Murphy USA reported strong quarterly results, earning $11.27 per share versus the $9.95 consensus estimate, while revenue rose 36% year over year to $6.81 billion.

Murphy USA Inc. (NYSE:MUSA - Get Free Report) declared a quarterly dividend on Thursday, August 13th. Shareholders of record on Monday, August 24th will be given a dividend of 0.65 per share by the specialty retailer on Thursday, September 3rd. This represents a c) dividend on an annualized basis and a yield of 0.5%. The ex-dividend date is Monday, August 24th. This is a 1.6% increase from Murphy USA's previous quarterly dividend of $0.64.

Murphy USA has raised its dividend by an average of 0.5%annually over the last three years and has raised its dividend every year for the last 4 years. Murphy USA has a payout ratio of 9.2% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Murphy USA to earn $29.58 per share next year, which means the company should continue to be able to cover its $2.56 annual dividend with an expected future payout ratio of 8.7%.

Murphy USA Price Performance

Shares of MUSA stock opened at $563.88 on Friday. The firm has a market cap of $10.41 billion, a P/E ratio of 17.17, a P/E/G ratio of 1.61 and a beta of 0.28. The company has a debt-to-equity ratio of 2.77, a current ratio of 0.92 and a quick ratio of 0.54. Murphy USA has a 1-year low of $349.83 and a 1-year high of $636.04. The firm has a fifty day moving average of $577.89 and a two-hundred day moving average of $513.65.

Murphy USA (NYSE:MUSA - Get Free Report) last released its earnings results on Wednesday, August 5th. The specialty retailer reported $11.27 earnings per share for the quarter, topping the consensus estimate of $9.95 by $1.32. The company had revenue of $6.81 billion during the quarter, compared to the consensus estimate of $6.03 billion. Murphy USA had a net margin of 2.87% and a return on equity of 96.01%. The company's revenue was up 36.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $7.36 EPS. As a group, research analysts anticipate that Murphy USA will post 33.84 earnings per share for the current fiscal year.

Insider Transactions at Murphy USA

In related news, SVP Renee M. Bacon sold 1,050 shares of the stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $529.44, for a total transaction of $555,912.00. Following the sale, the senior vice president owned 3,083 shares in the company, valued at $1,632,263.52. This represents a 25.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Diane N. Landen sold 3,000 shares of the firm's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $547.25, for a total transaction of $1,641,750.00. Following the completion of the transaction, the director directly owned 53,841 shares in the company, valued at $29,464,487.25. This represents a 5.28% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 9.02% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Huntington National Bank increased its position in Murphy USA by 106.7% in the fourth quarter. Huntington National Bank now owns 62 shares of the specialty retailer's stock worth $25,000 after buying an additional 32 shares during the period. EverSource Wealth Advisors LLC lifted its stake in Murphy USA by 423.1% in the second quarter. EverSource Wealth Advisors LLC now owns 68 shares of the specialty retailer's stock valued at $28,000 after buying an additional 55 shares during the last quarter. WPG Advisers LLC boosted its holdings in shares of Murphy USA by 148.5% during the fourth quarter. WPG Advisers LLC now owns 82 shares of the specialty retailer's stock valued at $33,000 after acquiring an additional 49 shares during the period. Los Angeles Capital Management LLC acquired a new position in shares of Murphy USA during the fourth quarter valued at $33,000. Finally, Root Financial Partners LLC boosted its holdings in shares of Murphy USA by 82.5% during the first quarter. Root Financial Partners LLC now owns 73 shares of the specialty retailer's stock valued at $36,000 after acquiring an additional 33 shares during the period. Institutional investors and hedge funds own 80.81% of the company's stock.

Murphy USA Company Profile

Murphy USA is a leading downstream marketer of gasoline, diesel and convenience store products in the United States. Headquartered in El Dorado, Arkansas, the company was originally established as part of Murphy Oil Corporation and was spun off as an independent public entity in 2013. Since its separation, Murphy USA has focused on retail fueling services and convenience offerings designed to deliver value and convenience to consumers.

The company's primary operations center on two retail formats.

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