The board of directors at Martin Marietta Materials, Inc.MLM announced a 5% hike in the quarterly dividend from 40 cents per share to 42 cents per share.
The quarterly dividend amounts to an annual dividend of $1.68 per share, which amounts to an annual yield of 0.9%.
Martin Marietta is a leading supplier of construction aggregates in the U.S. which is used for construction of highways, infrastructure projects as well as residential, commercial and industrial construction.
MARTIN MRT-MATL Price
The increased dividend should bolster investor confidence in the company.
Earlier this month the company announced lower-than-expected results in the second quarter of 2016 - missing the Zacks Consensus Estimate for both earnings and sales.
Adjusted earnings per share of $1.90 rose 56% from the prior-year quarter as pricing gains and cost control mitigated softer sales growth. Net sales increased almost 8% year over year as widespread pricing gains neutralized weak volume growth. The company's volumes in the quarter, primarily Cement and Aggregates, were hurt by heavy rainfall, mainly in the months of April and May, in key markets particularly Texas, North Carolina and Colorado.
However, despite slower second-quarter growth, most guidance parameters for 2016 were kept intact, as the company looks optimistic about delivering solid results in the second half of the year.
Robust pricing gains, stable cost structure, synergies from the Texas Industries acquisition and higher infrastructure volumes augur well for growth.
Zacks Rank and Other Stocks to Consider
Martin Marietta carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the sector are Eagle Materials Inc. EXP , Gibraltar Industries, Inc. ROCK and United Rentals, Inc. URI . While Gibraltar Industries and United Rentals sport a Zacks Rank #1 (Strong Buy), Eagle Materials carries a Zacks Rank #2 (Buy).
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