September Dividend Distributions
Merck and Several Funds Declare September Dividend Distributions for Shareholders
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Key Points
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Merck’s dividend appears well covered: its payout ratio was 35%, and analysts expected the company to earn $9.66 per share next year against an annual dividend of $3.40.
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RiverNorth Flexible Municipal Income Fund said its objective is to provide current income exempt from regular U.S. federal income taxes, with total return as a secondary objective; its dividend had declined by an average of 3% annually over the prior three years.
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RiverNorth/DoubleLine Strategic Opportunity Fund shares opened at $7.35, close to the fund’s 52-week low of $7.28, while its 52-week high was $8.82.
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Several institutional investors recently increased or initiated positions in RiverNorth Managed Duration Municipal Income Fund II, including Noble Wealth Management, which boosted its holdings by 416.7%, and Osaic Holdings, which increased its position by 94.2%.
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Sound Point Meridian Capital is an externally managed, non-diversified closed-end investment company that primarily invests in third-party collateralized loan obligation equity and mezzanine tranches; its latest quarter produced $0.24 in earnings per share and $12.42 million in revenue, below analyst estimates of $0.30 and $14.18 million, respectively.
Five companies announced dividend distributions with September 15 record dates, ranging from modest quarterly payouts to eye-catching monthly yields. Watchlist News reported that Merck declared a $0.85 quarterly dividend payable October 7, while three RiverNorth funds and Sound Point Meridian Capital scheduled payments for September 30, with yields spanning 7.5% to 24.9%.
Merck's dividend reflects a 2.4% yield and marks 14 consecutive years of annual increases, backed by a healthy 35% payout ratio. Sound Point Meridian Capital offers the highest yield at 24.9% but recently missed earnings targets, reporting $0.24 per share versus analyst estimates of $0.30.
Merck's Dividend Shows Strength and Consistency
Watchlist News reported that Merck's $0.85 quarterly dividend translates to $3.40 annually with a 2.4% yield. The pharmaceutical giant has increased its payout every year for 14 straight years. Analysts project earnings of $9.66 per share next year, making the $3.40 annual dividend sustainable at just 35% of expected earnings.
Three RiverNorth Funds Offer Municipal Income Options
Watchlist News noted that three RiverNorth funds declared monthly dividends with record dates on September 15. The Flexible Municipal Income Fund declared $0.0881 per share at a 7.6% yield, the Strategic Opportunity Fund declared $0.091 per share at 14.9%, and the Managed Duration Municipal Income Fund II declared $0.0891 per share at 7.5%. All three payments are due September 30.
The Flexible Municipal Income Fund targets federal tax-exempt current income with capital gains as a secondary goal. However, Ticker Report reported that its dividend declined an average of 3% annually over the prior three years. The Strategic Opportunity Fund trades near its 52-week low of $7.28, down from a high of $8.82.
Sound Point Meridian Offers High Yield Despite Missed Targets
Sound Point Meridian Capital announced the highest distribution at $0.20 monthly, representing a 24.9% yield. Ticker Report reported the company missed recent earnings expectations, producing $0.24 per share and $12.42 million in revenue versus analyst estimates of $0.30 and $14.18 million. The externally managed fund primarily invests in CLO equity and mezzanine tranches.
Institutional Investors Boost RiverNorth Fund Holdings
Watchlist News reported growing institutional interest in RiverNorth Managed Duration Municipal Income Fund II. Noble Wealth Management boosted its holdings by 416.7%, while Osaic Holdings increased its position by 94.2%. These moves suggest confidence in the fund despite the broader market environment affecting municipal bond values.
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