Jefferies Reports Air Products Dividend Bumps Higher

In a report published by Jefferies, Air Products APD dividend has bumped higher.

Jefferies said that Air Products announced it has repurchased $350m of stock so far in Q2(Mar). “In addition the company raised its quarterly dividend 18% to $0.58, implying a 2.7% yield. We are maintaining 2011E EPS (as incremental earnings are likely offset by near-term Electronics pressure), and raising 2012E $0.05 to $6.60. We reiterate our Buy rating. Air Products trades at 15.0x 2011E EPS and 8.5x EBITDA. Our $111/share price target represents 16.8x 2012E EPS and 9.7x EBITDA, and is based on our sector regression models while comparing favorable with Air Products' 10-year average NTM P/E of 16.7x. Key risks: slowing demand and chemical input costs; any deterioration in capital discipline.”

Air Products closed yesterday at $86.25.