HollyFrontier Corporation (NYSE: HFC) announced that its Board of Directors declared an additional special cash dividend in the amount of $0.50 per share, payable on October 2, 2012 to holders of record of common stock on September 25, 2012.
Mike Jennings, CEO and President of HollyFrontier, said, “Our Board of Directors’ decision to issue a 2nd special dividend for the third quarter 2012, our 4th special dividend this year, and our 6th special dividend since the completion of the merger that formed HollyFrontier in July 2011, is a reflection of our continued commitment to return capital to shareholders. The Board of Directors has declared $3.00 of special and regular dividends in the last twelve months representing a 7.5% dividend yield on today’s closing price of $40.00 per share. In total, HollyFrontier has returned $952 million of capital to shareholders since July 2011, $741 million in special and regular dividends as well as $211 million in share repurchases of its common stock as of the second quarter results announcement.”
HollyFrontier said last month that its second-quarter profit more than doubled as the refiner saw strong revenue growth, helped by the merger. The company has benefited from increased oil production in the Bakken region of North Dakota and the Permian Basin in Texasand New Mexico, as a glut of crude oil in the midcontinental region has allowed HollyFrontier to boost refining margins.
HollyFrontier is trading at $40.00, 49% below its fair value of $59.77. HollyFrontier pays a quarterly dividend of 1.50%. HollyFrontier has an equity summary score of 9.4 out of 10 for a VERY Bullish outlook.
Subscribers to the Get Rich Monthly Income Plan have been investing in HollyFrontier since January 2012 with a total return of 134% year to date.