3 Companies Shelling Out Special Dividends

·4 min read

There’s a large variety of investors out there. Some prefer to target growth, and some prefer to target value. However, some choose to target income, looking to receive a steady stream of income from their investments.

Of course, everybody loves getting paid. The feeling is even sweeter when the payouts come from your investments. Income investors typically look for companies with a track record of increased dividend payouts, strong cash flows, and high yields.

When companies have a spectacular quarter, they sometimes reward shareholders via a special dividend, allowing shareholders to benefit from the substantial profit. To income investors, it feels like the cherry on top.

We’ve gotten several special dividend announcements as of late, coming from companies including Ethan Allen Interiors ETD, Pioneer Natural Resources PXD, and EOG Resources EOG. The chart below illustrates the year-to-date performance of all three companies while blending in the S&P 500 as a benchmark.

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Zacks Investment Research


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Let’s take a look at their recent announcements and a few other aspects of their recent quarterly prints to see how the companies currently stack up.

Ethan Allen Interiors

Ethan Allen Interiors ETD is a leader in interior design, selling a full range of home furnishings through a retail network of design centers and its online website.

On August 2nd, it was announced that the company’s Board of Directors had declared a $0.50 per share special cash dividend, payable on August 30th to shareholders of record as of August 16th. The special dividend is paired along with its regular quarterly cash dividend of $0.32 per share.

The company had a stellar Q4 2022. ETD ended the quarter with a strong balance sheet, including cash and investments of $121 million as of June 30th and no debt.

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Furthermore, quarterly earnings of $1.25 per share crushed the Zacks Consensus EPS Estimate of $0.80 by a substantial 56%. Quarterly sales came in hot as well – 2022 Q4 revenue of $229 million handily beat the $197 million Zacks Consensus Estimate.

Below is a chart illustrating the company's quarterly EPS before non-recurring items.

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Zacks Investment Research


Image Source: Zacks Investment Research

Pioneer Natural Resources

Pioneer Natural Resources PXD operates as an independent oil and gas exploration and production company in the United States.

In its latest quarter, PXD announced that its Board of Directors had declared a quarterly base-plus-variable cash dividend of $8.57 per share ($1.10 base dividend and a $7.47 variable dividend). The dividend is payable September 16, 2022, to stockholders of record at the close of business on September 6, 2022.

In addition, quarterly free cash flow was reported at a strong $2.3 billion, reflecting a massive 225% year-over-year uptick. The company’s durable free cash flow enables rich dividends at different commodity prices. Below is a chart illustrating the company’s free cash flow on a quarterly basis.

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Zacks Investment Research


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PXD reported quarterly earnings of $9.36 per share in its latest print, good enough to exceed the Zacks Consensus EPS Estimate of $8.81 by a solid 6.3%. Quarterly sales of $6.9 billion came in marginally under expectations.

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Zacks Investment Research


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EOG Resources

EOG Resources EOG is primarily involved in exploring and producing oil and natural gas. The leading upstream energy player’s operations are spread across the United States, China, and Trinidad.

On August 4th, EOG announced that shareholders of record as of September 15th would receive a special cash dividend of $1.50 per share on September 29th. In addition, the company will consider the quarterly regular dividend in September.

EOG Resources has an exceptional balance sheet paired with a commitment to return a minimum of 60% of its annual free cash flow to shareholders. In its latest earnings release, quarterly free cash flow was reported at $734 million, a solid 8.4% year-over-year uptick.

Below is a chart illustrating the company’s free cash flow on a quarterly basis.

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Zacks Investment Research


Image Source: Zacks Investment Research

In the latest print, EOG reported quarterly earnings of $2.74 per share vs. expectations of $2.99 per share, reflecting an 8.3% bottom-line miss. However, quarterly revenue came in at a robust $7.4 billion, reflecting a strong 11.5% top-line beat.

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Zacks Investment Research


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Bottom Line

Dividends are a major perk that carry massive benefits for investors. It provides a reliable income stream, helping alleviate drawdowns in other positions.

When companies have an incredible quarter, they’ll sometimes shell out special dividend payouts, making any income investor ecstatic. Simply put, it’s the cherry on top.

All three companies above – Ethan Allen Interiors ETD, Pioneer Natural Resources PXD, and EOG Resources EOG – have announced special dividend payouts on the back of stellar quarterly results.


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Pioneer Natural Resources Company (PXD) : Free Stock Analysis Report
 
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Ethan Allen Interiors Inc. (ETD) : Free Stock Analysis Report
 
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