The Dynamic Dividend

Core-Mark Initiates Quarterly Dividend, Yields 2%

Core-Mark Holding Company (CORE) declared a quarterly dividend of $0.17 per share this morning, a first for the convenience store solutions company.

Analysts currently expect Core-Mark to earn $2.58 per share this year, giving the company a manageable 26% payout ratio to start its dividend-paying era. The consensus earnings estimate for 2012 is $3.23 per share, which produces a 21% forward payout ratio. In addition, the company also has enough cash on its balance sheet ($1.70 per share) to cover its dividend for ten quarters, so this is clearly a very safe payout.

Shares of CORE are currently trading at $33.37, where they now feature a shiny new 2.04% dividend yield. The stock is down about 6% in 2011, and flat over the past year.