Smithfield Foods, Inc. (NASDAQ:SFD) to Issue Quarterly Dividend of $0.31

Key Points

• Smithfield Foods declared a quarterly dividend of $0.3125 per share, payable August 27 to shareholders of record August 13. The dividend implies a 4.7% yield and is supported by a 54.3% payout ratio.
• The company reported quarterly EPS of $0.64, exceeding estimates of $0.58, while revenue reached $3.80 billion, up 0.8% year over year and above expectations.
• Smithfield shares opened at $26.59, with a market capitalization of $10.46 billion and a 52-week trading range of $21.08 to $29.81; several institutional investors recently increased their stakes.

Smithfield Foods, Inc. (NASDAQ:SFD - Get Free Report) announced a quarterly dividend on Thursday, July 30th. Stockholders of record on Thursday, August 13th will be paid a dividend of 0.3125 per share on Thursday, August 27th. This represents a c) dividend on an annualized basis and a dividend yield of 4.7%. The ex-dividend date of this dividend is Thursday, August 13th.

Smithfield Foods has a dividend payout ratio of 54.3% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Smithfield Foods to earn $2.55 per share next year, which means the company should continue to be able to cover its $1.25 annual dividend with an expected future payout ratio of 49.0%.

Smithfield Foods Stock Performance

Shares of Smithfield Foods stock opened at $26.59 on Friday. The company has a 50 day moving average price of $25.67 and a 200 day moving average price of $25.55. The firm has a market capitalization of $10.46 billion, a P/E ratio of 10.39 and a beta of -0.41. The company has a quick ratio of 1.29, a current ratio of 2.41 and a debt-to-equity ratio of 0.20. Smithfield Foods has a 52 week low of $21.08 and a 52 week high of $29.81.

Smithfield Foods (NASDAQ:SFD - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The company reported $0.64 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.58 by $0.06. Smithfield Foods had a net margin of 6.48% and a return on equity of 15.54%. The business had revenue of $3.80 billion during the quarter, compared to analysts' expectations of $3.74 billion. During the same quarter last year, the company posted $0.58 earnings per share. The business's quarterly revenue was up .8% on a year-over-year basis. Sell-side analysts expect that Smithfield Foods will post 2.7 EPS for the current year.

Institutional Investors Weigh In On Smithfield Foods

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Millennium Management LLC increased its position in shares of Smithfield Foods by 94.0% during the third quarter. Millennium Management LLC now owns 3,634,709 shares of the company's stock worth $85,343,000 after acquiring an additional 1,760,713 shares during the period. Balyasny Asset Management L.P. grew its holdings in shares of Smithfield Foods by 653.3% during the third quarter. Balyasny Asset Management L.P. now owns 1,664,585 shares of the company's stock worth $39,084,000 after purchasing an additional 1,443,605 shares during the last quarter. Norges Bank acquired a new stake in shares of Smithfield Foods during the fourth quarter worth about $31,291,000. Jacobs Levy Equity Management Inc. lifted its holdings in shares of Smithfield Foods by 583.6% in the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 1,212,144 shares of the company's stock valued at $28,461,000 after purchasing an additional 1,034,814 shares during the last quarter. Finally, Qube Research & Technologies Ltd boosted its position in shares of Smithfield Foods by 553.2% in the 3rd quarter. Qube Research & Technologies Ltd now owns 1,061,740 shares of the company's stock valued at $24,930,000 after purchasing an additional 899,200 shares during the period.

About Smithfield Foods

Smithfield Foods, Inc NASDAQ: SFD is one of the world's largest pork processors and hog producers. Founded in 1936 in Smithfield, Virginia, the company has grown from a regional ham producer into a fully integrated food company offering a broad range of fresh pork, value-added meats and prepared foods. Its product portfolio includes bacon, ham, sausage, ribs and deli meats marketed under well-known brands such as Smithfield®, Nathan's Famous® and Eckrich®.

Smithfield operates a network of hog production facilities, processing plants and distribution centers across the United States, Europe and Latin America.

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