Franco-Nevada Co. (NYSE:FNV) Raises Dividend to $0.38 Per Share

Franco-Nevada Co. (NYSE:FNV) (TSE:FNV) announced a quarterly dividend on Friday, January 31st,Wall Street Journal reports. Shareholders of record on Thursday, March 13th will be paid a dividend of 0.38 per share by the basic materials company on Thursday, March 27th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 1.12%. The ex-dividend date is Thursday, March 13th. This is a positive change from Franco-Nevada’s previous quarterly dividend of $0.36.

Franco-Nevada has increased its dividend payment by an average of 7.5% per year over the last three years. Franco-Nevada has a payout ratio of 30.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Franco-Nevada to earn $4.04 per share next year, which means the company should continue to be able to cover its $1.44 annual dividend with an expected future payout ratio of 35.6%.

Franco-Nevada Price Performance

Shares of FNV traded down $0.18 during mid-day trading on Friday, reaching $136.06. The company had a trading volume of 632,355 shares, compared to its average volume of 634,183. Franco-Nevada has a twelve month low of $103.64 and a twelve month high of $138.34. The company’s 50-day moving average is $123.15 and its 200-day moving average is $124.20. The company has a market capitalization of $26.20 billion, a P/E ratio of -43.06, a P/E/G ratio of 5.90 and a beta of 0.72.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last issued its earnings results on Wednesday, November 6th. The basic materials company reported $0.80 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.83 by ($0.03). Franco-Nevada had a positive return on equity of 10.55% and a negative net margin of 55.28%. The company had revenue of $275.70 million during the quarter, compared to analyst estimates of $279.11 million. During the same period in the previous year, the company posted $0.91 earnings per share. The company’s quarterly revenue was down 10.9% on a year-over-year basis. As a group, equities analysts expect that Franco-Nevada will post 3.19 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on FNV. HC Wainwright reaffirmed a “buy” rating and set a $155.00 price target on shares of Franco-Nevada in a report on Tuesday. Canaccord Genuity Group raised Franco-Nevada from a “hold” rating to a “buy” rating in a report on Monday, November 18th. Jefferies Financial Group lowered their target price on Franco-Nevada from $137.00 to $136.00 and set a “hold” rating for the company in a research note on Thursday, October 17th. Canaccord Genuity Group raised Franco-Nevada from a “hold” rating to a “buy” rating in a research note on Monday, November 18th. Finally, Scotiabank lowered their target price on Franco-Nevada from $142.00 to $141.00 and set a “sector perform” rating for the company in a research note on Friday, November 8th. Four investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Franco-Nevada has an average rating of “Moderate Buy” and a consensus price target of $145.33.

About Franco-Nevada

Franco-Nevada Corporation operates as a gold-focused royalty and streaming company in South America, Central America, Mexico, the United States, Canada, and internationally. It operates through Mining and Energy segments. The company manages its portfolio with a focus on precious metals, such as gold, silver, and platinum group metals; and engages in the sale of crude oil, natural gas, and natural gas liquids through a third-party marketing agent.