Dividend Coverage: This Frozen Foods Supplier raised its Annualized Dividend by 14%; Will Trade Ex-Dividend on August 25, 2017

LONDON, UK / ACCESSWIRE / August 24, 2017 / Pro-Trader Daily takes a closer look at Pinnacle Foods Inc. (NYSE: PF) as the Company’s stock will begin trading ex-dividend on August 25, 2017. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on August 24, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:

http://protraderdaily.com/register/

Today, PRO-TD covers ex-dividend news on PF. Get our free coverage by signing up at:

http://protraderdaily.com/optin/?symbol=PF

Dividend Declared

On August 16, 2017, Pinnacle Foods announced that its Board of Directors has approved a 14% increase in its quarterly cash dividend from $0.285 per share to $0.325 per share, effective with the Company’s upcoming Q3 2017 dividend. The upcoming dividend is payable on October 09, 2017, to shareholders of record at the close of business on August 29, 2017. On an annualized basis, the new dividend increases to $1.30 per share from the previous annualized rate of $1.14 per share.

Pinnacle Foods’ indicated dividend represents a yield of 2.12%, which is substantially ahead of the average dividend yield of 1.88% for the Consumer Goods sector. The Company has raised its dividend for three consecutive years.

Dividend Insights

Pinnacle Foods has a dividend payout ratio of 50.8%, which means that it distributes approximately $0.51 for every $1.00 earned. The dividend payout ratio reflects how much money a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.

According to analysts’ estimates, Pinnacle Foods is forecasted to report earnings of $2.81 for the next year which is comfortably ahead of its annualized dividend of $1.30.

Pinnacle Foods’ net cash provided by operating activities totaled $57 million in its latest earnings release compared to $88 million in Q2 2016. For H1 2017, the Company’s net cash provided by operating activities totaled $120 million compared to $165 million in the year ago same period. As of June 25, 2017, Pinnacle Foods’ cash and cash equivalents totaled $130.87 million. The Company’s current assets as on that date were $909.53 million, while current liabilities totaled $528.87 million. The Company’s strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.

Recent Development for Pinnacle Foods

On July 27, 2017, Pinnacle Foods reported its financial results for the second quarter ended June 25, 2017, and reaffirmed its full-year guidance at the low-end of its range.

The Company’s diluted earnings per share in Q2 2017, including items affecting comparability, decreased to $0.16 versus $0.39 in the year ago corresponding period. Excluding items affecting comparability, adjusted diluted EPS advanced 26% to $0.53 compared to $0.42 in Q2 2016.

Pinnacle Foods’ net sales declined 1.6% to $744.6 million in Q2 2017 compared to net sales of $756.4 million in Q2 2016. This performance reflected underlying business strength, more than offset by the AJ exit and Boulder impacts totaling 3.5%. The underlying net sales growth of 1.9% in the quarter was driven by higher volume/mix of 3.3%, including the benefit of the later Easter holiday, partially offset by lower net realized pricing of 1.3%.

About Pinnacle Foods

Pinnacle Foods is a leading manufacturer, marketer, and distributor of high-quality branded food products. With annual sales in excess of $3 billion, the Company’s portfolio includes well-known brands competing in frozen, refrigerated, and shelf-stable formats, such as Birds Eye, Birds Eye Voila!, Duncan Hines, Earth Balance, EVOL, Gardein, Glutino, Hungry-Man, Log Cabin, Udi’s, Vlasic, and Wish-Bone, along with many others. The Company is headquartered in Parsippany, New Jersey and has nearly 5,000 employees across the US and Canada.

Stock Performance

On Wednesday, August 23, 2017, the stock closed the trading session at $61.60, marginally up 0.26% from its previous closing price of $61.44. A total volume of 1.09 million shares have exchanged hands. Pinnacle Foods’s stock price surged 1.20% in the last three months, 8.66% in the past six months, and 20.90% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 15.25%. The stock is trading at a PE ratio of 40.21 and has a dividend yield of 2.11%. At Wednesday’s closing price, the stock’s net capitalization stands at $7.28 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily

ReleaseID: 473599