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Posts Tagged ‘HollyFrontier Corporation (NYSE: HFC)’

HFC pays 8th Special Dividend and Boosts Regular Dividend by 50%

Investors looking for a regular helping of special dividends should consider HollyFrontier Corporation (NYSE: HFC). The company just announced its 8th special dividend since August 2011.  In addition, HFC just juiced its regular dividend by 50%.

Subscribers to my Get Rich Monthly Income Plan received $31.00 per share in dividends in 2012 with a yield on cost of 12.5% in one year.  In addition, subscribers received $1,690 in call premiums on each 100 shares of HFC stock in 2012.  The covered call premiums accounts for a yield of 68% as subscribers utilized a special income technique called the perpetual covered call.  In total, Monthly income Plan subscribers booked a total return of 219% on HFC in 2012 alone!

HollyFrontier Corporation (HFC) announced today that its Board of Directors approved a 50% increase in the Company’s regular quarterly cash dividend to $0.30 per share from the current rate of $0.20 per share. This is the fifth increase in the regular dividend since the merger in July of 2011, representing a total increase of 300%. The regular dividend will be paid on April 2, 2013 to holders of record of common stock on March 15, 2013.

The Company also announced today a special cash dividend in the amount of $0.50 per share. The special dividend will be paid on March 19, 2013 to holders of record of common stock on March 5, 2013. This is the 8th special dividend declared by HollyFrontier since August 2011.

HFC’s stock price is up 70% in the past year but still trades at a low PE of 7.5 which is a 60% discount to the industry average PE ratio.  HFC has an equity summary score of 9.8 out of 10 for a VERY Bullish outlook.

Mike Jennings, CEO and President of HollyFrontier, said, “Our Board of Directors remains committed to delivering value to our shareholders through both a growing regular dividend as well as special dividends. After today’s 50% dividend increase, our current regular dividend yield is 2.2%, and our trailing twelve month cash dividend yield stands at 6.1% relative to today’s closing price of $53.72. Including today’s announcement, HollyFrontier has returned almost $1.3 billion in capital to shareholders through regular dividends, special dividends and buybacks since the July 2011 merger.”

Best Income Stocks for 2013 – HollyFrontier (HFC)

HollyFrontier Corporation (NYSE: HFC) operates as an independent petroleum refiner and marketer in the United States. It produces light products, such as gasoline, diesel fuel, jet fuel, specialty lubricant products, liquefied petroleum gas, fuel oil, and specialty and modified asphalt.  HollyFrontier has a strong history of increasing shareholder value with special dividends and share buybacks.  The company trades at a discount to other refiners, has a strong balance sheet, is well managed and is looking to expand

HollyFrontier made the Goldman Sachs “Best Income Stocks” list for 2013.  In a recent note, Goldman Sachs Group Inc. pointed out a number of stocks that could provide some easy money for investors by virtue of what the Wall Street bank calls a “social contract” — a combination of earnings appreciation due to expected share buybacks along with dividend yields.  It could be easy money, provided shares remain stable or rise, for investors looking for as close to a guarantee as equities can offer.

HollyFrontier boasts an 8.4% dividend, more than twice that of any other company.  But its relatively low 3.5% buyback earnings accretion keeps the total payout at 11.9%.  Trading in the upper $40s, HollyFrontier also is considered to have the highest price upside of nearly 50%, with a target of $69.

HollyFrontier has an equity summary score of 7.6 out of 10 for a Bullish outlook.  HFC has a mean analyst recommendation of 2.2 out of 4.0 for a BUY rating.

HollyFrontier reported 3Q earnings increased 18.5%  and 9 months earnings increased 15% from the same periods a year earlier.

HollyFrontier reported third quarter net income attributable to stockholders of $600.4 million or $2.94 per diluted share for the quarter ended September 30, 2012, compared to $523.1 million or $2.48 per diluted share for the quarter ended September 30, 2011. For the nine months ended September 30, 2012, net income attributable to HollyFrontier stockholders totaled $1,335.6 million or $6.44 per diluted share compared to $800.0 million or $5.63 per diluted share for the nine months ended September 30, 2011.

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HollyFrontier’s President & CEO, Mike Jennings, commented, “We had a tremendous quarter with third quarter results reaching new record levels. Exceptionally high inland to coastal crude oil differentials as well as robust heavy crude oil differentials helped drive our refined product margins to all time highs. Looking forward, we believe that the structural crude advantages currently driving our strong operating margins will continue to positively impact our operating income, allowing us to continue to pay both regular and special dividends. We remain focused on increasing total shareholder return while maintaining a strong balance sheet.”

On November 1, HollyFrontier raised its quarterly dividend 33% and also unveiled an additional special payout of 50 cents per share, the refiner’s latest moves to reward investors.

 

The five-cent increase to HollyFrontier’s regular dividend brings the payout to 20 centsper share and will cost the company about $40.7 million more a year. HFC has a current dividend yield of 1.69%.  The latest dividend increase represents the fourth dividend increase since the company’s merger in July 2011.

HollyFrontier said its special cash dividend, its fifth special payout this year.  The company’s board year-to-date has declared $3.10 in special and regular dividends, which represents an approximate 8% cash yield.

HollyFrontier Corporation (NYSE: HFC) was one of the big winners for subscribers to the Get Rich Monthly income Plan.  HFC was purchased in January 2012 as part of the perpetual covered call strategy.  Monthly Income subscribers received the $3.10 in dividends and $1,690 in total call option premium.  The total return on HFC during 2012 was 212% for newsletter subscribers.

 

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