Franco-Nevada Corporation (NYSE:FNV) Declares $0.44 Quarterly Dividend

Franco-Nevada Corporation (NYSE:FNV) (TSE:FNV) announced a quarterly dividend on Tuesday, August 11th. Stockholders of record on Thursday, September 10th will be paid a dividend of 0.44 per share by the basic materials company on Thursday, September 24th. This represents a c) dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Thursday, September 10th.

Franco-Nevada has decreased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 2 years. Franco-Nevada has a payout ratio of 35.3% meaning its dividend is sufficiently covered by earnings. Analysts expect Franco-Nevada to earn $8.80 per share next year, which means the company should continue to be able to cover its $1.76 annual dividend with an expected future payout ratio of 20.0%.

Franco-Nevada Stock Performance

Shares of NYSE:FNV traded down $3.36 during trading on Wednesday, hitting $237.38. The company’s stock had a trading volume of 331,588 shares, compared to its average volume of 853,646. The company has a market capitalization of $45.78 billion, a PE ratio of 33.43, a PEG ratio of 2.03 and a beta of 0.35. Franco-Nevada has a fifty-two week low of $173.39 and a fifty-two week high of $285.67. The stock’s 50-day moving average price is $215.32 and its two-hundred day moving average price is $235.65.

Franco-Nevada (NYSE:FNV) (TSE:FNV) last issued its quarterly earnings data on Tuesday, August 11th. The basic materials company reported $1.81 earnings per share for the quarter, missing analysts’ consensus estimates of $1.95 by ($0.14). Franco-Nevada had a net margin of 65.12% and a return on equity of 18.10%. The business had revenue of $580.90 million for the quarter, compared to analyst estimates of $616.66 million. During the same quarter last year, the business earned $1.24 EPS. Franco-Nevada’s revenue for the quarter was up 57.3% compared to the same quarter last year. On average, equities analysts predict that Franco-Nevada will post 8.23 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on FNV. TD raised shares of Franco-Nevada from a “hold” rating to a “buy” rating and decreased their price target for the stock from $292.00 to $291.00 in a research report on Wednesday, May 20th. TD Securities upgraded shares of Franco-Nevada from a “hold” rating to a “buy” rating and set a $291.00 price objective on the stock in a research note on Wednesday, May 20th. National Bank Financial raised shares of Franco-Nevada from a “sector perform” rating to an “outperform” rating in a research report on Wednesday, May 13th. Weiss Ratings cut Franco-Nevada from a “buy (b)” rating to a “buy (b-)” rating in a research note on Monday, June 8th. Finally, Jefferies Financial Group cut their target price on shares of Franco-Nevada from $258.00 to $245.00 and set a “hold” rating on the stock in a report on Monday, July 6th. Eleven investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $273.40.

Franco-Nevada Company Profile

Franco-Nevada Corporation is a Toronto-based royalty and streaming company that specializes in securing and managing long-term interests in mining properties. The firm focuses primarily on precious metals, particularly gold, while also holding interests related to silver, copper, platinum-group metals and select base metals. Rather than operating mines directly, Franco-Nevada acquires royalty and streaming agreements that entitle it to a percentage of production or revenue from producing and developing assets in exchange for upfront or staged financing.

The company’s business model centers on providing capital to mining companies in return for a sustained share of production or metal revenue, which can reduce exposure to operating and capital cost risks typical of mine operators.