Murphy USA Inc. (NYSE:MUSA) Raises Dividend to $0.64 Per Share

Key Points

• Murphy USA raised its quarterly dividend to $0.64 per share (a 1.6% increase), payable June 1 to shareholders of record May 18, which equates to an annual yield of roughly 0.4%.
• The company reported a strong quarter — EPS $7.28 versus $5.37 expected and revenue of $4.82 billion (up 6.5% year-over-year) — and maintains a low dividend payout ratio (~9%), indicating the dividend is well covered by earnings.
• Shares trade near $581 with a one-year range of $345.23–$609.82, a market cap of about $10.8 billion and a P/E of ~20, reflecting solid valuation metrics after the earnings beat.

Murphy USA Inc. (NYSE:MUSA - Get Free Report) announced a quarterly dividend on Thursday, May 7th. Stockholders of record on Monday, May 18th will be paid a dividend of 0.64 per share by the specialty retailer on Monday, June 1st. This represents a c) annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend is Monday, May 18th. This is a 1.6% increase from Murphy USA's previous quarterly dividend of $0.63.

Murphy USA has raised its dividend by an average of 0.5%annually over the last three years and has increased its dividend every year for the last 4 years. Murphy USA has a dividend payout ratio of 9.0% meaning its dividend is sufficiently covered by earnings. Research analysts expect Murphy USA to earn $29.26 per share next year, which means the company should continue to be able to cover its $2.52 annual dividend with an expected future payout ratio of 8.6%.

Murphy USA Stock Up 0.8%

Shares of NYSE:MUSA opened at $580.96 on Friday. Murphy USA has a one year low of $345.23 and a one year high of $609.82. The company has a 50 day moving average of $484.36 and a 200-day moving average of $427.89. The company has a debt-to-equity ratio of 3.24, a current ratio of 0.83 and a quick ratio of 0.48. The stock has a market cap of $10.75 billion, a price-to-earnings ratio of 20.08, a P/E/G ratio of 1.92 and a beta of 0.36.

Murphy USA (NYSE:MUSA - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The specialty retailer reported $7.28 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.37 by $1.91. The firm had revenue of $4.82 billion during the quarter, compared to analysts' expectations of $4.70 billion. Murphy USA had a net margin of 2.81% and a return on equity of 91.05%. The business's revenue for the quarter was up 6.5% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.63 earnings per share. On average, sell-side analysts forecast that Murphy USA will post 31.8 earnings per share for the current year.

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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