South Bow Corporation Announces Quarterly Dividend of $0.50 (NYSE:SOBO)

Key Points

• South Bow declared a quarterly dividend of $0.50 per share, payable October 15 to shareholders of record September 29, representing a $2.00 annualized dividend and a 5.6% yield.
• The dividend currently exceeds earnings, with a 109.9% payout ratio; analysts expect next year’s earnings to improve coverage, though the projected payout ratio remains high at 98.5%.
• South Bow exceeded quarterly expectations, reporting $0.50 in earnings per share and $546 million in revenue. Analysts maintain a consensus “Hold” rating with an average price target of $32, below the stock’s reported $35.65 opening price.

South Bow Corporation (NYSE:SOBO - Get Free Report) announced a quarterly dividend on Wednesday, August 5th. Investors of record on Tuesday, September 29th will be paid a dividend of 0.50 per share on Thursday, October 15th. This represents a c) dividend on an annualized basis and a dividend yield of 5.6%. The ex-dividend date of this dividend is Tuesday, September 29th.

South Bow has a payout ratio of 109.9% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect South Bow to earn $2.03 per share next year, which means the company should continue to be able to cover its $2.00 annual dividend with an expected future payout ratio of 98.5%.

South Bow Stock Up 0.5%

Shares of NYSE:SOBO opened at $35.65 on Thursday. The business's 50 day moving average is $36.66 and its 200 day moving average is $33.93. The stock has a market cap of $7.44 billion, a P/E ratio of 17.61 and a beta of 0.15. South Bow has a 52-week low of $25.01 and a 52-week high of $38.94. The company has a quick ratio of 1.37, a current ratio of 1.51 and a debt-to-equity ratio of 2.16.

South Bow (NYSE:SOBO - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.50 earnings per share for the quarter, beating analysts' consensus estimates of $0.45 by $0.05. South Bow had a return on equity of 15.24% and a net margin of 21.32%.The business had revenue of $546.00 million during the quarter, compared to analyst estimates of $496.87 million. Sell-side analysts predict that South Bow will post 1.78 EPS for the current year.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. The Goldman Sachs Group started coverage on South Bow in a research note on Monday, April 20th. They set a "sell" rating and a $29.00 price target on the stock. Canadian Imperial Bank of Commerce upped their price objective on shares of South Bow from $33.00 to $36.00 and gave the stock a "neutral" rating in a research note on Tuesday, May 26th. National Bank Financial increased their target price on shares of South Bow from $31.00 to $35.00 and gave the stock a "sector perform" rating in a report on Monday, June 1st. TD Securities reissued a "hold" rating on shares of South Bow in a research report on Thursday, July 16th. Finally, Weiss Ratings restated a "buy (b+)" rating on shares of South Bow in a report on Thursday, June 11th. Four investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $32.00.

About South Bow

South Bow Corp is a strategic liquids pipeline company. It is a new liquids-focused midstream infrastructure company. South Bow Corp is based in Canada.

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