Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Macquarie Infrastructure (NYS: MIC) rose 10% in trading today after the company announced earnings and an increased dividend.
So what: The company said revenue rose 4.6% to $258.5 million and combined free cash flow per share was $0.93. Analysts expected cash flow to be $0.78 per share.
The company also increased its full-year guidance of combined free cash flow to $3.70 per share.
Now what: The company is still in a dispute over distributions with co-investors in IMTT, which adds uncertainty, but management was confident enough to raise its dividend to $0.625 per share from $0.20 per share. This would indicate a $2.50 dividend per year, a 6.5% yield at the current price. This and the company's better-than-expected results give me confidence shares still have some room to run in coming quarters.
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The article Why Macquarie Infrastructure's Shares Popped originally appeared on Fool.com.
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