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

Key Points

• South Bow declared a quarterly dividend of $0.50 per share (annualized $2.00) for a yield of about 5.7%; the record date is June 30 and the payment date is July 15.
• The dividend is currently not covered by earnings — a payout ratio of 109.9% — meaning the company is relying on its balance sheet, though analysts forecast next-year EPS of $2.12 which would reduce the payout to roughly 94%.
• Shares trade near $35.13 with a market cap of $7.33B and a P/E of 16.99, while analysts’ consensus rating is "Reduce" with a $30.38 average target price, reflecting mixed-to-negative sentiment.

South Bow Corporation (NYSE:SOBO - Get Free Report) declared a quarterly dividend on Thursday, May 7th. Investors of record on Tuesday, June 30th will be given a dividend of 0.50 per share on Wednesday, July 15th. This represents a c) annualized dividend and a dividend yield of 5.7%. The ex-dividend date of this dividend is Tuesday, June 30th.

South Bow has a dividend payout ratio of 109.9% meaning 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 $2.12 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 94.3%.

South Bow Price Performance

SOBO stock traded up $0.02 during mid-day trading on Friday, reaching $35.13. The company's stock had a trading volume of 391,120 shares, compared to its average volume of 1,010,981. The stock has a market cap of $7.33 billion, a PE ratio of 16.99 and a beta of 0.11. The company has a current ratio of 1.50, a quick ratio of 1.43 and a debt-to-equity ratio of 2.13. South Bow has a fifty-two week low of $24.51 and a fifty-two week high of $35.56. The company's 50 day moving average is $33.18 and its two-hundred day moving average is $29.53.

South Bow (NYSE:SOBO - Get Free Report) last released its quarterly earnings data on Thursday, March 5th. The company reported $0.61 EPS for the quarter, beating analysts' consensus estimates of $0.40 by $0.21. The company had revenue of $503.00 million during the quarter, compared to the consensus estimate of $500.57 million. South Bow had a net margin of 21.80% and a return on equity of 15.55%. South Bow's quarterly revenue was up 3.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.54 EPS. Equities research analysts expect that South Bow will post 1.88 EPS for the current year.

Analysts Set New Price Targets

A number of research firms have commented on SOBO. BMO Capital Markets reiterated a "market perform" rating on shares of South Bow in a report on Monday, April 27th. The Goldman Sachs Group began coverage on shares of South Bow in a report on Monday, April 20th. They issued a "sell" rating and a $29.00 price objective for the company. Wolfe Research downgraded shares of South Bow from a "peer perform" rating to an "underperform" rating and set a $24.00 price objective for the company. in a report on Wednesday, January 14th. Scotiabank increased their price objective on shares of South Bow from $30.00 to $34.00 and gave the company a "sector perform" rating in a report on Friday, March 6th. Finally, TD Securities reiterated a "hold" rating on shares of South Bow in a report on Friday, May 1st. Three investment analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus target price of $30.38.

South Bow Company Profile

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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