What Do Old Dominion, Piper Jaffray and Tenneco Have in Common?

 | Feb 02, 2017 | 4:00 PM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:






This commentary was sent to subscribers of Dividend Stock Advisor at 11:58 a.m. on Feb. 2. Click here to learn about this newsletter and portfolio service for income investors.

Three notable companies initiated dividend payouts in the past 24 hours.

First, Old Dominion Freight Line (ODFL) said Thursday that it will begin paying a quarterly dividend of $0.10 a share (0.5% yield). Investors at the close of trading on March 1 will qualify for the payout on March 20. The truck shipper's initial annual payout represents just 10% of expected 2017 earnings of $3.98 a share.

The company is expected to average 12% annual earnings growth over the next two years, which should allow management to steadily growth the dividend. Even so, the stock has gained 55% over the past year and recently traded around $86.65, so the new starter payout will likely not spark much investor interest.

Next, Piper Jaffray (PJC) initiated a quarterly dividend of $0.3125 a share (1.7% yield) today. Investors at the close of trading on Feb. 14 will qualify for the payment on March 13. The investment brokerage's initial annual payout is equal to 22% of expected 2017 earnings of $5.63 per share.

Management also posted better-than-expected quarterly results today. Piper shares have moved 125% higher over the past 12 months and recently traded around $75.30. As a result, the new dividend represents just another positive sign from management.

Finally, Tenneco (TEN) said overnight that it will begin paying a quarterly dividend of $0.25 a share (1.45% yield). Investors at the close of trading on March 2 will qualify for the payment on March 23. The initial annual payout from the auto parts manufacturer is equal to 15% of expected 2017 EPS of $6.47. Management also pledged to repurchase up to $400 million of stock over the next three years.

Speaking of management, Tenneco announced today that Brian Kesseler will become the new chief executive officer on May 17. Kesseler has been the company's chief operating officer since January 2015 and is replacing Gregg Sherrill, who led the business for 10 years.

The stock has gained 88% over the past year and recently traded around $69.00. Given this is an internal promotion, we believe the executive transition should be relatively smooth. The dividend and buyback serve as another way that Tenneco is rewarding shareholders.

Columnist Conversations

In GS I see key price support at the 224.49-226.42 area.  I also have timing for a possible low.  I ...
Tesla (TSLA) has tested our long-term bounce zone @ 283.90-258.95 a few times. These have been BUYING opportun...
We have a big winner here, let's roll it up to a higher strike   SOLD SRPT NOV 140 CALL AT 26 (in ...
We still like this name and want to give it more time. SOLD AAPL OCT 220 CALL AT 6.9 (in at 10) BOUGHT A...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.