Commercial Metals Company (NYSE:CMC) Declares Quarterly Dividend of $0.20

Key Points

• Commercial Metals declared a quarterly dividend of $0.20 per share, payable on April 15 to holders of record on April 6, marking an 11.1% increase from the prior quarterly payout and implying a yield of about 1.3%.
• The dividend is well covered—the company has a current payout ratio of 16.9% (expected to be ~15.4% next year) and has increased its dividend each year for the past four years.
• In its most recent quarter CMC beat estimates with $1.84 EPS (vs. $1.55 expected) and revenue of $2.12 billion (+11% YoY), while the stock traded down about 2.1% to $62.49 amid a market cap near $6.9 billion.

Commercial Metals Company (NYSE:CMC - Get Free Report) declared a quarterly dividend on Wednesday, March 25th. Investors of record on Monday, April 6th will be paid a dividend of 0.20 per share by the basic materials company on Wednesday, April 15th. This represents a c) dividend on an annualized basis and a yield of 1.3%. The ex-dividend date is Monday, April 6th. This is a 11.1% increase from Commercial Metals's previous quarterly dividend of $0.18.

Commercial Metals has increased its dividend payment by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 4 years. Commercial Metals has a dividend payout ratio of 16.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Commercial Metals to earn $4.69 per share next year, which means the company should continue to be able to cover its $0.72 annual dividend with an expected future payout ratio of 15.4%.

Commercial Metals Trading Down 2.1%

Shares of NYSE:CMC traded down $1.32 during mid-day trading on Wednesday, hitting $62.49. The stock had a trading volume of 1,983,092 shares, compared to its average volume of 1,307,174. The company's 50 day moving average is $73.49 and its 200-day moving average is $66.59. Commercial Metals has a 12-month low of $37.92 and a 12-month high of $84.87. The company has a debt-to-equity ratio of 0.77, a quick ratio of 3.70 and a current ratio of 4.47. The company has a market cap of $6.93 billion, a PE ratio of 16.11, a P/E/G ratio of 0.33 and a beta of 1.47.

Commercial Metals (NYSE:CMC - Get Free Report) last announced its quarterly earnings data on Thursday, January 8th. The basic materials company reported $1.84 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.55 by $0.29. Commercial Metals had a return on equity of 11.43% and a net margin of 5.46%.The firm had revenue of $2.12 billion during the quarter, compared to the consensus estimate of $2.06 billion. During the same period in the prior year, the business earned $0.78 EPS. The business's revenue for the quarter was up 11.0% on a year-over-year basis. On average, sell-side analysts predict that Commercial Metals will post 3.09 EPS for the current year.

About Commercial Metals

Commercial Metals Company NYSE: CMC is a leading global steel and metal recycler, manufacturer and fabricator based in Irving, Texas. The company operates an integrated network of scrap recycling facilities, electric arc furnace steel mills, metal fabrication plants and distribution centers. Through these operations, Commercial Metals collects and processes ferrous scrap to produce finished steel products and provides recycled metal to a variety of end markets.

In its steelmaking segment, CMC uses electric arc furnace technology to transform recycled scrap into reinforcing bar (rebar), merchant bar, coil and structural products.

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