- Marathon Petroleum was able to navigate the downturn of 2020 whilst also sustaining their dividends.
- They have now completed their massive $21b divestiture of Speedway with upwards of $10b heading towards share buybacks.
- This should reduce their outstanding share count by upwards of 25% but interestingly, they will only lose approximately 16% of their operating cash flow.
- When combined with their capital expenditure reductions, this big decrease to the outstanding share count stands to see their dividends surge by upwards of 33% in the future.
- Since their financial position remains healthy and they could provide a future dividend yield on current cost of over 5%, I believe that a bullish rating is appropriate.
For further details see:
Marathon Petroleum: Dividends Could Surge Following The $21B Speedway Sale