November 14, 2017 - 7:20 AM EST
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Dividend Coverage: US 3rd Largest Refiner has a Dividend Yield of 2.59%; Will Trade Ex-Dividend on November 15, 2017

LONDON, UK / ACCESSWIRE / November 14, 2017 / Pro-Trader Daily takes a closer look at Marathon Petroleum Corp. (NYSE: MPC) as the Company's stock will begin trading ex-dividend on November 15, 2017. In order to capture the dividend payout, investors must purchase the stock a day prior to the ex-dividend date that is by latest at the end of the trading session on November 14, 2017. Are you looking for research on dividend stocks, if so register with us now for your free membership at:

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Today, PRO-TD covers ex-dividend news on MPC. Get our free coverage by signing up at:

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Dividend Declared

On October 25, 2017, Marathon Petroleum announced that its Board of Directors declared a dividend of $0.40 per share on common stock. The dividend is payable December 11, 2017, to shareholders of record as of the close of business on November 16, 2017.

Marathon Petroleum's indicated dividend represents a yield of 2.59%, which is substantially above the average dividend yield of 2.37% for the Basic Materials sector. The Company has raised dividend for six consecutive years.

Dividend Insights

Marathon Petroleum has a dividend payout ratio of 44.6%, which means that the Company spends approximately $0.45 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects how much amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.

According to analysts' estimates, Marathon Petroleum is forecasted to report earnings of $4.19 for the next year, which is more than double the Company's annualized dividend of $1.60 per share.

On Sept. 30, 2017, Marathon Petroleum had $2.1 billion of cash and cash equivalents, $2.5 billion available under a revolving credit agreement, $1 billion available under a 364-day bank revolving credit facility, and full availability under its $750 million trade receivables securitization facility.

For the three months ended September 30, 2017, the Company's net cash provided by operating activities totaled $1.90 billion compared to cash flow from operating activities of $849 million in the year-ago same period. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain the dividend distribution for a long period.

Recent Development for Marathon Petroleum

On October 17, 2017, Marathon Pipe Line LLC, operator of the 40-inch, 1.2 million barrels per day capacity Capline pipeline, announced that the pipeline`s owners are launching a non-binding open season to gauge shipper interest in a proposed reversal of Capline, which currently transports crude oil from St. James, Louisiana to Patoka, Illinois.

The non-binding open season will run from October 17, 2017, through November 17, 2017. If the owners, Plains All American Pipeline L.P. (PAA), Marathon Petroleum, and BP Oil Pipeline Co. decide to proceed, southbound flow could be operational by H2 2022. Once in southbound service, Capline would have an initial capacity up to 300,000 barrels per day. The reversed pipeline would be able to receive crude oil from connecting carriers at Patoka. At St. James, shippers would have access to a distribution network that includes refineries, terminals, ships, barges, and rail.

Marathon Pipe Line LLC, a wholly owned subsidiary of MPLX L.P. (MPLX), the master limited partnership sponsored by Marathon Petroleum, operates Capline. The pipeline was once a major transportation route for delivering crude oil that was imported or produced in the Gulf of Mexico to refineries in the Midwest.

Stock Performance

Marathon Petroleum's share price finished yesterday's trading session at $62.20, marginally advancing 0.78%. A total volume of 2.82 million shares have exchanged hands. The Company's stock price skyrocketed 19.87% in the last three months, 18.52% in the past six months, and 41.49% in the previous twelve months. Additionally, the stock surged 23.54% since the start of the year. Shares of the Company have a PE ratio of 19.45 and have a dividend yield of 2.57%. The stock currently has a market cap of $30.35 billion.

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Source: ACCESSWIRE Investor Awareness (November 14, 2017 - 7:20 AM EST)

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