Analysis – Kansas City Southern Inc. Increases Dividend by 18%


Kansas City Southern Incorporated announced a regular quarterly dividend of $0.33 per share, an 18 percent increase from the prior rate of $0.28 per share.  The dividend will be paid at the new higher rate on April 8, 2015 to shareholders of record at close of business on March 9, 2015.

Date Quarterly Dividend
3/9/2015 0.33
12/29/2014 0.28
9/4/2014 0.28
6/5/2014 0.28
3/6/2014 0.28
12/27/2013 0.215
9/5/2013 0.215
6/6/2013 0.215
3/7/2013 0.215
12/6/2012 0.195
9/6/2012 0.195
6/7/2012 0.195
4/12/2012 0.195

Analysis of Valuation of Kansas City Southern Inc. (Symbol KSU).

Kansas City Southern is trading above its average price/sale (P/S) range. Kansas City Southern is trading at the top of its average dividend yield range.

Price 1/30/15 % Yield 5 Year Div. Growth Rate SPS 2015 P/S  Ratio 10 yr P/S  Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
110.09 1.1% 19.5 25.85 4.61 0.78 5.78 1.10% 0.70%

Kansas City Southern Dividend Yield Chart (Click to enlarge)


Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.

Further information on evaluating dividend growth candidates can be found

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