Commercial Metals Company (NYSE:CMC) Shareholders to Get $0.20 Quarterly Dividend

Key Points

• Commercial Metals declared a quarterly dividend of $0.20 per share, payable November 11 to shareholders of record on October 28. The dividend equates to $0.80 annually and a 1.2% yield.
• The dividend appears well covered, with an 18.8% current payout ratio and an expected future payout ratio of 10.8%; the company has raised its dividend for four consecutive years.
• CMC also authorized a $600 million stock repurchase plan, allowing it to buy back up to 7.5% of outstanding shares, while its stock recently traded at $64.81.

Commercial Metals Company (NYSE:CMC - Get Free Report) declared a quarterly dividend on Tuesday, October 13th. Shareholders of record on Wednesday, October 28th will be paid a dividend of $0.20 per share by the basic materials company on Wednesday, November 11th. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Wednesday, October 28th.

Commercial Metals has increased its dividend by an average of 0.1% per year over the last three years and has raised its dividend annually for the last 4 consecutive years. Commercial Metals has a payout ratio of 18.8% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Commercial Metals to earn $7.44 per share next year, which means the company should continue to be able to cover its $0.80 annual dividend with an expected future payout ratio of 10.8%.

Commercial Metals Price Performance

Shares of NYSE:CMC traded up $0.73 on Tuesday, hitting $64.81. The stock had a trading volume of 1,399,699 shares, compared to its average volume of 1,196,147. Commercial Metals has a twelve month low of $53.08 and a twelve month high of $84.87. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.54 and a current ratio of 2.33. The firm's 50 day moving average price is $67.54 and its 200-day moving average price is $68.21. The company has a market capitalization of $7.17 billion, a price-to-earnings ratio of 12.20, a price-to-earnings-growth ratio of 0.33 and a beta of 1.53.

Commercial Metals declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, August 5th that permits the company to repurchase $600.00 million in shares. This buyback authorization permits the basic materials company to purchase up to 7.5% of its stock through open market purchases. Share buyback plans are typically an indication that the company's leadership believes its stock is undervalued.

Commercial Metals Company Profile

Commercial Metals Company NYSE: CMC is a steel and metals manufacturer, fabricator and recycler headquartered in Irving, Texas. Founded in 1915, the company operates a vertically integrated business that collects and processes ferrous scrap, produces steel and supplies products used in construction and infrastructure projects.

CMC's product portfolio includes reinforcing bar, merchant bar, wire rod, structural components and other steel products. Through its fabrication and construction services, the company also processes and prepares reinforcing steel for commercial, industrial, transportation and other building projects.

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