Alcoa (NYSE:AA) to Issue Quarterly Dividend of $0.10

Key Points

• Alcoa announced a quarterly dividend of $0.10 per share, payable to stockholders of record on August 12th, reflecting a 1.33% dividend yield and a $0.40 annualized dividend.
• Alcoa reported earnings of $0.39 per share for the last quarter, surpassing estimates by $0.10, and achieved a revenue of $3.02 billion, which was above expectations.
• Analysts have set a consensus target price of $41.23 for Alcoa, with ratings ranging from "sell" to "buy" based on varying price objectives given by different financial institutions.

Alcoa (NYSE:AA - Get Free Report) declared a quarterly dividend on Wednesday, July 30th, RTT News reports. Stockholders of record on Tuesday, August 12th will be paid a dividend of 0.10 per share by the industrial products company on Thursday, August 28th. This represents a c) annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Tuesday, August 12th.

Alcoa has a dividend payout ratio of 15.5% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Alcoa to earn $3.17 per share next year, which means the company should continue to be able to cover its $0.40 annual dividend with an expected future payout ratio of 12.6%.

Alcoa Price Performance

NYSE:AA traded down $1.57 during trading hours on Friday, hitting $28.40. 6,928,186 shares of the company's stock traded hands, compared to its average volume of 6,093,337. The firm has a market cap of $7.35 billion, a P/E ratio of 7.42, a P/E/G ratio of 0.16 and a beta of 2.24. Alcoa has a 52 week low of $21.53 and a 52 week high of $47.77. The business's fifty day simple moving average is $29.35 and its two-hundred day simple moving average is $30.42. The company has a quick ratio of 0.97, a current ratio of 1.65 and a debt-to-equity ratio of 0.42.

Alcoa (NYSE:AA - Get Free Report) last issued its quarterly earnings results on Wednesday, July 16th. The industrial products company reported $0.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.29 by $0.10. Alcoa had a return on equity of 19.27% and a net margin of 7.86%. The firm had revenue of $3.02 billion during the quarter, compared to analyst estimates of $2.96 billion. During the same quarter in the previous year, the company posted $0.16 earnings per share. The company's revenue was up 3.9% compared to the same quarter last year. On average, research analysts anticipate that Alcoa will post 4.43 earnings per share for the current fiscal year.

Alcoa Company Profile

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company operates through two segments, Alumina and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting and casting businesses.