Delek US Holdings, Inc. (NYSE:DK) Declares Dividend Increase – $0.30 Per Share

Delek US Holdings, Inc. (NYSE:DK) declared a quarterly dividend on Thursday, October 29th. Investors of record on Tuesday, November 10th will be given a dividend of $0.30 per share by the oil and gas company on Wednesday, November 18th. This represents a $1.20 annualized dividend and a dividend yield of 1.7%. The ex-dividend date is Tuesday, November 10th. This is a 17.6% increase from Delek US’s previous quarterly dividend of $0.2550.

Delek US has a payout ratio of -48.1% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Delek US to earn $14.03 per share next year, which means the company should continue to be able to cover its $1.02 annual dividend with an expected future payout ratio of 7.3%.

Delek US Stock Performance

Shares of DK opened at $71.07 on Friday. The firm has a 50-day moving average of $73.81 and a 200-day moving average of $52.59. Delek US has a one year low of $25.85 and a one year high of $82.27. The company has a market cap of $4.35 billion, a PE ratio of 19.96, a price-to-earnings-growth ratio of 0.51 and a beta of 0.62. The company has a debt-to-equity ratio of 7.53, a current ratio of 0.76 and a quick ratio of 0.47.

Delek US (NYSE:DK) last issued its earnings results on Wednesday, August 5th. The oil and gas company reported $5.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.67 by $2.81. Delek US had a net margin of 1.86% and a return on equity of 109.03%. The business had revenue of $4.09 billion during the quarter, compared to the consensus estimate of $3.44 billion. During the same period last year, the business posted ($0.56) EPS. Delek US’s revenue was up 47.9% on a year-over-year basis. As a group, equities analysts forecast that Delek US will post 18.62 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on DK. JPMorgan Chase & Co. raised their price objective on Delek US from $57.00 to $62.00 and gave the company a “neutral” rating in a research note on Tuesday, July 14th. Wall Street Zen raised shares of Delek US from a “buy” rating to a “strong-buy” rating in a report on Sunday, August 9th. Freedom Broker began coverage on shares of Delek US in a report on Wednesday, October 7th. They set a “hold” rating and a $86.00 price target for the company. Wells Fargo & Company raised their price objective on Delek US from $82.00 to $95.00 and gave the company an “overweight” rating in a report on Wednesday, October 14th. Finally, Mizuho lowered Delek US from an “outperform” rating to a “neutral” rating and boosted their price objective for the stock from $66.00 to $83.00 in a research report on Thursday, October 8th. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, Delek US presently has a consensus rating of “Moderate Buy” and an average price target of $75.00.

About Delek US

Delek US Holdings, Inc is a downstream energy company headquartered in Brentwood, Tennessee. The company operates petroleum refineries and related logistics assets, producing and transporting fuels and other refined petroleum products for markets primarily in the southern United States.

Through its refining operations, Delek processes crude oil into products such as gasoline, diesel, jet fuel and asphalt. Its logistics business, conducted in part through Delek Logistics Partners, owns and operates pipelines, crude oil gathering systems, storage terminals, transportation assets and other infrastructure that supports the movement of crude oil and refined products.

Delek has also operated convenience stores and fuel stations, particularly in Texas and neighboring states, under brands including DK and Alon.