Why Macquarie Infrastructure's Shares Popped

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 (NYSE: 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.

Interested in more info on Macquarie Infrastructure? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

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