Franco-Nevada Corporation (NYSE:FNV) Increases Dividend to $0.44 Per Share

Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV) announced a quarterly dividend on Monday, January 26th. Investors of record on Thursday, March 12th will be given a dividend of 0.44 per share by the basic materials company on Thursday, March 26th. This represents a c) annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Thursday, March 12th. This is a 15.8% increase from Franco-Nevada’s previous quarterly dividend of $0.38.

Franco-Nevada has increased its dividend payment by an average of 0.0%annually over the last three years and has raised its dividend every year for the last 2 years. Franco-Nevada has a payout ratio of 30.5% meaning its dividend is sufficiently covered by earnings. Research analysts expect Franco-Nevada to earn $4.02 per share next year, which means the company should continue to be able to cover its $1.52 annual dividend with an expected future payout ratio of 37.8%.

Franco-Nevada Price Performance

Franco-Nevada stock opened at $259.54 on Tuesday. The firm’s 50 day moving average price is $216.84 and its 200-day moving average price is $198.75. Franco-Nevada has a 1 year low of $127.20 and a 1 year high of $266.61. The stock has a market cap of $50.04 billion, a P/E ratio of 54.41, a PEG ratio of 1.44 and a beta of 0.48.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last issued its earnings results on Monday, November 3rd. The basic materials company reported $1.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.37 by $0.06. Franco-Nevada had a return on equity of 13.94% and a net margin of 59.48%.The firm had revenue of $487.70 million for the quarter, compared to analysts’ expectations of $448.51 million. During the same period in the previous year, the firm posted $0.80 earnings per share. The business’s revenue was up 76.9% compared to the same quarter last year. As a group, equities analysts expect that Franco-Nevada will post 3.09 EPS for the current year.

Franco-Nevada Company Profile

Franco-Nevada Corporation is a Toronto-based royalty and streaming company that specializes in securing and managing long-term interests in mining properties. The firm focuses primarily on precious metals, particularly gold, while also holding interests related to silver, copper, platinum-group metals and select base metals. Rather than operating mines directly, Franco-Nevada acquires royalty and streaming agreements that entitle it to a percentage of production or revenue from producing and developing assets in exchange for upfront or staged financing.

The company’s business model centers on providing capital to mining companies in return for a sustained share of production or metal revenue, which can reduce exposure to operating and capital cost risks typical of mine operators.