EL DORADO, Ark. - Murphy USA Inc. (NYSE: NYSE:MUSA), a prominent gasoline and convenience store retailer, announced on Thursday a 6.7% increase in its quarterly cash dividend. The company's Board of Directors has declared a dividend of $0.48 per share, or $1.92 on an annualized basis, up from the previous quarter's dividend.
The new dividend will be payable on December 2, 2024, to shareholders of record at the close of business on November 4, 2024. This marks a continued commitment to shareholder returns by the company.
Murphy USA operates a chain of more than 1,700 retail locations across the United States, primarily in the Southwest, Southeast, Midwest, and Northeast regions. The company employs nearly 15,000 individuals and is known for its retail gasoline and convenience stores, which serve approximately two million customers daily. A significant number of Murphy USA's stores are strategically located near Walmart (NYSE:WMT) Supercenters, enhancing their accessibility to consumers.
The company also owns and operates standalone stores under the Murphy Express and QuickChek brands. With its considerable presence in the retail sector, Murphy USA holds the 214th spot on the Fortune 500 list of companies, reflecting its substantial scale and influence in the marketplace.
This dividend increase is part of Murphy USA's financial strategy, signaling confidence in its business model and ongoing ability to generate cash flow. The company's performance and growth initiatives appear to be aligned with its commitment to delivering value to its investors.
The information for this report is based on a press release statement from Murphy USA Inc.
In other recent news, Murphy USA experienced a record-breaking quarter with the highest retail fuel margin in company history, despite slower merchandise sales growth in discretionary categories. The company also announced a 2.3% increase in its quarterly cash dividend to $0.45 per share, reflecting its commitment to providing value to investors. On the strategic front, Murphy USA plans to open 47 new store locations by 2024 and aims to repurchase up to $1.5 billion of its stock by 2028.
Additionally, in a recent development, JPMorgan downgraded Murphy USA's stock from a Neutral to an Underweight rating, citing concerns about the valuation of the company. Despite the company's successful business model and prospects for continued growth, JPMorgan's analysis suggests that the current valuation may be reaching unsustainable levels.
In a separate incident, Robert Westbrook, a British individual, was arrested on charges of hacking into the computer systems of undisclosed companies, including Murphy USA, to gain insider information on their expected earnings. The U.S. authorities are pursuing his extradition from London to face these charges. Westbrook allegedly used this confidential information to trade stocks before the results were made public, amassing illegal profits of approximately $3.75 million.
InvestingPro Insights
Murphy USA's recent dividend increase aligns with its track record of shareholder value creation. According to InvestingPro data, the company has raised its dividend for 4 consecutive years, demonstrating a consistent commitment to returning capital to investors. This latest 6.7% increase brings the dividend yield to 0.38%, based on the most recent data.
The company's financial health appears robust, with a market capitalization of $9.67 billion and a revenue of $18.85 billion over the last twelve months as of Q2 2024. Despite a slight revenue decline of 5.6% during this period, Murphy USA maintains a strong profitability profile with a P/E ratio of 18.77, suggesting a reasonable valuation relative to earnings.
InvestingPro Tips highlight that Murphy USA is a prominent player in the Specialty Retail industry and has been profitable over the last twelve months. The company's stock has shown impressive performance, with a one-year price total return of 34.63% as of the latest data. This strong return aligns with another InvestingPro Tip indicating high returns over the last decade and five years.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights, with 11 more tips available for Murphy USA.
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