Southwest Gas Holdings, Inc. (NYSE:SWX) Plans Dividend Increase – $0.62 Per Share

Southwest Gas Holdings, Inc. (NYSE:SWXGet Rating) declared a quarterly dividend on Thursday, February 24th, Zacks reports. Investors of record on Monday, May 16th will be given a dividend of 0.62 per share by the utilities provider on Wednesday, June 1st. This represents a $2.48 dividend on an annualized basis and a dividend yield of 2.76%. The ex-dividend date is Friday, May 13th. This is a boost from Southwest Gas’s previous quarterly dividend of $0.60.

Southwest Gas has raised its dividend by an average of 4.6% annually over the last three years and has increased its dividend every year for the last 17 years. Southwest Gas has a payout ratio of 51.2% meaning its dividend is sufficiently covered by earnings. Analysts expect Southwest Gas to earn $4.86 per share next year, which means the company should continue to be able to cover its $2.48 annual dividend with an expected future payout ratio of 51.0%.

SWX opened at $89.84 on Wednesday. The company has a debt-to-equity ratio of 1.39, a quick ratio of 0.52 and a current ratio of 0.52. The stock has a market capitalization of $5.44 billion, a P/E ratio of 26.27, a price-to-earnings-growth ratio of 3.79 and a beta of 0.11. The business has a 50 day simple moving average of $81.37. Southwest Gas has a 12-month low of $62.54 and a 12-month high of $91.99.

Southwest Gas (NYSE:SWXGet Rating) last posted its quarterly earnings data on Tuesday, March 1st. The utilities provider reported $1.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.56 by $0.05. Southwest Gas had a net margin of 5.46% and a return on equity of 8.48%. The company had revenue of $1.08 billion for the quarter, compared to the consensus estimate of $1.05 billion. During the same quarter last year, the firm posted $1.82 earnings per share. As a group, research analysts predict that Southwest Gas will post 4.63 EPS for the current fiscal year.

Several equities analysts have weighed in on SWX shares. TheStreet raised shares of Southwest Gas from a “c+” rating to a “b-” rating in a report on Monday, April 4th. StockNews.com downgraded shares of Southwest Gas from a “hold” rating to a “sell” rating in a report on Thursday, May 5th. Bank of America raised shares of Southwest Gas from a “neutral” rating to a “buy” rating and lifted their price target for the company from $81.00 to $88.00 in a report on Wednesday, March 30th. Finally, Wells Fargo & Company lifted their price objective on shares of Southwest Gas from $84.00 to $101.00 in a research report on Tuesday. Two research analysts have rated the stock with a sell rating, one has assigned a hold rating and one has given a buy rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $89.00.

Several institutional investors have recently added to or reduced their stakes in SWX. Morgan Stanley raised its position in shares of Southwest Gas by 33.3% during the second quarter. Morgan Stanley now owns 190,729 shares of the utilities provider’s stock valued at $12,624,000 after buying an additional 47,675 shares during the last quarter. Barclays PLC increased its position in Southwest Gas by 73.6% in the fourth quarter. Barclays PLC now owns 150,776 shares of the utilities provider’s stock worth $10,562,000 after purchasing an additional 63,915 shares during the last quarter. Cubist Systematic Strategies LLC bought a new stake in Southwest Gas in the fourth quarter worth $490,000. Millennium Management LLC increased its position in Southwest Gas by 85.9% in the fourth quarter. Millennium Management LLC now owns 276,844 shares of the utilities provider’s stock worth $19,393,000 after purchasing an additional 127,893 shares during the last quarter. Finally, Marshall Wace LLP bought a new stake in Southwest Gas in the fourth quarter worth $2,296,000. Hedge funds and other institutional investors own 85.29% of the company’s stock.

About Southwest Gas (Get Rating)

Southwest Gas Holdings, Inc, through its subsidiaries, distributes and transports natural gas in Arizona, Nevada, and California. The company operates through Natural Gas Distribution, Utility Infrastructure Services, and Pipeline and Storage segments. It also provides trenching, installation, and replacement of underground pipes, as well as maintenance services for energy distribution systems.

See Also

Dividend History for Southwest Gas (NYSE:SWX)

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