Dividend Watch: FMC Technologies Coming Share Split (FTI, PBR)

FMC Technologies, Inc. (NYSE: FTI) is soon to reflect what many investors consider the next best thing to a dividend: a stock split.  It was about a month ago that the company approved a two-for-one stock split of the common stock in the form of a stock dividend.  The cut-off date has already passed on a settlement basis and the payable date is March 31 with an ex-Date of April 1, 2011. 

The split will increase its total shares outstanding from approximately 120 million shares to 240 million shares.  The last split we saw was another 2 for 1 split back in late-2007.  Stock splits in general on broader stocks have not exactly been as common and routine of late as we used to see in years past.  Either share prices just aren’t hitting high enough share prices or the firms are watching many companies keep their larger share prices. 

FMC offers technology solutions for the energy industry. The company has a new CEO and it recently announced a $125 million pact from Petroleo Brasileiro (NYSE: PBR).  Its own description shows that it “designs, manufactures and services technologically sophisticated systems and products such as subsea production and processing systems, surface wellhead systems, high pressure fluid control equipment, measurement solutions, and marine loading systems for the oil and gas industry.”

FMC actually pays no formal common dividend yet despite nearly ten years of being public and despite its $11.4 billion market cap.  Thomson Reuters has estimates of $3.38 EPS for 2011 and $4.18 EPS for 2012.  That being said, its forward P/E ratios are 28 for 2011 and almost 23 for 2012. 

Shares are very close to all-time highs.  At $94.75, its 52-week trading range is $46.16 to $97.35.

JON C. OGG