Renowned consumer goods firm Pilgrim's Pride Corporation (PPC) has taken a step forward to increase its shareholders’ value through a special cash dividend of $5.77 per share. This initiative comes in the wake of the company’s capital structure and shareholder value increment strategy.
As per the company’s claims, it would offer $1.5 billion worth of special dividend based on its current shares outstanding. The company claimed that the dividend will be offered to shareholders on Feb 17, 2015. In sync with its policy of benefiting shareholders and improving its capital structure in business, the company is making concerted efforts to upgrade the value of its exports and enhance overall operational excellence.
Over time, the balance sheet status of Pilgrim's Pride is remarkably improving. In the last reported quarter, the company’s cash and cash equivalents stood at $868.6 million, up 70.9%. While total long term liabilities climbed down by 12.2%. By improving financial strength, Pilgrim's Pride aims to provide higher value to shareholders.
Pilgrim's Pride had generated an average earnings surprise of 9.45% in the last four trailing quarters, without missing the estimates in any one of them. Presently, the company is making strategic attempts to generate greater economic surplus through organic and inorganic growth strategies.
Declaration of a new dividend scheme indicates its commitment to augment shareholders’ wealth. Based on these outcomes, we expect investors to maintain a positive outlook toward the stock in the upcoming quarters.
Pilgrim's Pride is a premium consumer goods company, owning a high brand value in the market. The company operates different types of chicken processing plants and also owns many food facilities in Mexico and Puerto Rico. With a vast international network, Pilgrim's Pride provides employment to more than 35000 individuals around the world.
With a market capitalization of $8.17 billion, Pilgrim's Pride carries a Zacks Rank #2 (Buy). Some better-ranked stocks in the industry include JBS S.A. (JBSAY), Tyson Foods, Inc. (TSN) and Aramark (ARMK). All three stocks carry the same Zacks Rank as Pilgrim's Pride.
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