Share prices of
) rose 1.6% on Friday, Feb 7, following the company's
announcement of a 31% increase in quarterly dividend on Feb 6.
Fluor has increased the quarterly dividend to 21 cents per share
from 16 cents per share. The increased dividend will be paid on
Apr 2, 2014 to shareholders of record on Mar 4.
The current rise comes almost after a couple of years of its
prior dividend increase declared on Mar 1, 2012, when it was
raised by 108% to 26 cents.
Based on the closing share price of $77.21 on Feb 7, 2014, the
increased dividend implies a dividend yield of 1.09%. The current
dividend yield is better than that of some other engineering and
) with a yield of 0.87% and
) with a yield of 1.03%.
With approximately 164.8 million shares outstanding as at
third quarter end, Fluor needs to dish out about $34.6 million
per quarter as dividend. The company's solid financial position
well cushions the payout. At the end of the third quarter, its
cash and marketable securities stood at $3.0 billion, reflecting
an increase of more than 15% from that at year-end 2012. The
company's retained earnings also increased by 11% to $4.01
million compared to $3.60 million as on Dec 31, 2012.
Fluor has strategically aligned its priorities to benefit its
shareholders and enhance dividend growth. This dividend hike was
supported by its disciplined capital allocation, strong and
flexible balance sheet position along with a consistent cash
Fluor has been benefiting from the increased demand in its Oil
& Gas and Power businesses. Also, given the nature of the
company's operations, which primarily include long-cycle
projects, the amount of backlog in the company's income statement
reflects its scope for revenue generation in future.
Fluor currently holds a Zacks Rank #2 (Buy). Another stock in
news that has also raised its dividend recently is
AO Smith Corp.
), which increased its quarterly dividend by 25% to 15 cents per
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