Murphy USA raises dividend to $0.50 per share

Published 01/05/2025, 21:38
Murphy USA raises dividend to $0.50 per share

EL DORADO, Ark. - Murphy USA Inc. (NYSE: MUSA), a prominent gasoline and convenience merchandise retailer with a market capitalization of $9.9 billion, has announced an increase in its quarterly cash dividend. The Board of Directors declared a dividend of $0.50 per share, which represents a 2% hike from the previous quarter’s dividend, amounting to an annualized rate of $2.00 per share. According to InvestingPro data, this marks the company’s 5th consecutive year of dividend increases, with the current yield standing at 0.39%.

The dividend is set to be paid on June 2, 2025, to shareholders who are on record as of May 12, 2025. This decision by the company’s board reflects a slight increase in shareholder returns.

Murphy USA operates a network of more than 1,750 stores across various regions of the United States, including the Southwest, Southeast, Midwest, and Northeast. The company employs approximately 17,200 people and serves around two million customers daily, generating annual revenues of $17.9 billion. Its stores are strategically located near Walmart Supercenters, with additional standalone stores under the Murphy Express and QuickChek brands. While the company maintains a strong market presence, InvestingPro analysis indicates the stock is currently trading above its Fair Value.

As of the latest rankings, Murphy USA holds the 214th spot on the Fortune 500 list, signifying its substantial presence in the retail gasoline and convenience store market.

The announcement is based on a press release statement from Murphy USA and provides investors with the latest update on the company’s financial distributions. The slight increase in the dividend payout may be of interest to current and potential shareholders, reflecting the company’s performance and its approach to shareholder value.

Stockholders of Murphy USA can expect to receive the declared dividend in early June, provided they are registered by the specified date in May. The company’s strategic positioning and consistent performance continue to play a role in its operational success and financial decisions, reflected in its P/E ratio of 20.4x and gross profit margin of 7.3%. For deeper insights into Murphy USA’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which include additional financial metrics and expert recommendations.

In other recent news, Murphy USA Inc. reported its fourth-quarter 2024 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $6.96, compared to the projected $6.60. However, the company’s revenue fell short, reaching $4.71 billion against an anticipated $5.37 billion. Despite the revenue miss, Murphy USA achieved $1 billion in EBITDA for the year 2024. Additionally, Murphy USA announced plans to open up to 50 new stores in 2025, highlighting its growth strategy. In financial restructuring news, Murphy USA secured $1.35 billion in credit facilities, including a $600 million term loan and a $750 million revolving credit facility, with Royal Bank of Canada and JPMorgan Chase Bank as administrative agents. Analyst firm Melius Research initiated coverage on Murphy USA with a Buy rating and a price target of $600, citing the company’s efficient cost structure and potential for high growth. These recent developments reflect Murphy USA’s strategic efforts to enhance financial flexibility and operational efficiency.

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