South Bow Co. (NYSE:SOBO) to Issue $0.50 Quarterly Dividend

South Bow Co. (NYSE:SOBO) announced a quarterly dividend on Wednesday, March 5th, NASDAQ Dividends reports. Investors of record on Monday, March 31st will be given a dividend of 0.50 per share on Tuesday, April 15th. This represents a $2.00 annualized dividend and a yield of 7.64%. The ex-dividend date of this dividend is Monday, March 31st.

South Bow has a payout ratio of 109.3% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect South Bow to earn $1.71 per share next year, which means the company may not be able to cover its $2.00 annual dividend with an expected future payout ratio of 117.0%.

South Bow Trading Up 0.6 %

Shares of SOBO opened at $26.18 on Friday. South Bow has a 12-month low of $21.98 and a 12-month high of $27.60. The company has a market cap of $5.45 billion and a P/E ratio of 14.15. The firm’s 50-day simple moving average is $25.31.

South Bow (NYSE:SOBO) last announced its earnings results on Wednesday, March 5th. The company reported $0.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.12. The company had revenue of $488.00 million during the quarter, compared to analysts’ expectations of $524.87 million. On average, equities research analysts expect that South Bow will post 1.74 EPS for the current year.

Analysts Set New Price Targets

Several equities research analysts have weighed in on SOBO shares. TD Securities initiated coverage on shares of South Bow in a research report on Wednesday, January 15th. They set a “hold” rating for the company. JPMorgan Chase & Co. initiated coverage on shares of South Bow in a report on Friday. They set a “neutral” rating and a $28.00 target price for the company. Royal Bank of Canada restated an “outperform” rating on shares of South Bow in a report on Friday, March 7th. CIBC cut South Bow from a “sector outperform” rating to a “neutral” rating and set a $25.00 price objective for the company. in a report on Friday, March 7th. Finally, Wells Fargo & Company cut South Bow from a “hold” rating to a “strong sell” rating in a research note on Wednesday, December 18th. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating, one has given a buy rating and two have assigned a strong buy rating to the company’s stock. According to MarketBeat.com, South Bow currently has an average rating of “Hold” and an average target price of $26.25.

South Bow Company Profile

South Bow Corp is a strategic liquids pipeline company. It is a new liquids-focused midstream infrastructure company. South Bow Corp is based in Canada.