South Bow Co. (SOBO) to Issue Quarterly Dividend of $0.50 on April 15th

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 dividend on an annualized basis and a dividend 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 research 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 Price Performance

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

South Bow (NYSE:SOBO) last issued its quarterly earnings data on Wednesday, March 5th. The company reported $0.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.42 by $0.12. The firm had revenue of $488.00 million during the quarter, compared to the consensus estimate of $524.87 million. On average, sell-side analysts anticipate that South Bow will post 1.74 EPS for the current fiscal year.

Wall Street Analyst Weigh In

SOBO has been the subject of a number of research analyst reports. Wells Fargo & Company downgraded South Bow from a “hold” rating to a “strong sell” rating in a research report on Wednesday, December 18th. TD Securities started coverage on South Bow in a research note on Wednesday, January 15th. They set a “hold” rating on the stock. Scotiabank increased their price target on shares of South Bow from $26.00 to $27.00 and gave the company a “sector perform” rating in a research report on Friday, March 7th. CIBC downgraded shares of 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, JPMorgan Chase & Co. started coverage on shares of South Bow in a research note on Friday. They issued a “neutral” rating and a $28.00 target price on the stock. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating, one has assigned a buy rating and two have assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $26.25.

About South Bow

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.