Minerals Technologies Inc. (NYSE:MTX) Increases Dividend to $0.13 Per Share

Key Points

• Minerals Technologies increased its quarterly dividend 8.3% to $0.13 per share, or $0.52 annualized, representing an approximately 0.8% yield. The dividend is payable December 3 to shareholders of record November 5.
• The dividend appears well covered, with a payout ratio of 7.5%; analysts expect next year’s earnings to support a similar payout ratio of about 7.0%.
• Recent results missed analyst expectations, with EPS of $1.60 versus $1.64 expected and revenue of $548.4 million versus $558.8 million, although revenue rose 3.7% year over year. Investor sentiment may also face pressure following a reported Zacks “Strong Sell” downgrade.

Minerals Technologies Inc. (NYSE:MTX - Get Free Report) announced a quarterly dividend on Wednesday, October 21st. Investors of record on Thursday, November 5th will be given a dividend of $0.13 per share by the basic materials company on Thursday, December 3rd. This represents a $0.52 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Thursday, November 5th. This is a 8.3% increase from Minerals Technologies's previous quarterly dividend of $0.12.

Minerals Technologies has raised its dividend by an average of 0.2% per year over the last three years and has increased its dividend annually for the last 2 consecutive years. Minerals Technologies has a dividend payout ratio of 7.5% indicating that its dividend is sufficiently covered by earnings. Analysts expect Minerals Technologies to earn $6.90 per share next year, which means the company should continue to be able to cover its $0.48 annual dividend with an expected future payout ratio of 7.0%.

Minerals Technologies Stock Performance

Shares of NYSE MTX traded up $0.41 during trading hours on Thursday, hitting $63.65. 10,913 shares of the stock were exchanged, compared to its average volume of 208,785. Minerals Technologies has a one year low of $53.94 and a one year high of $84.34. The company's 50 day moving average is $68.08 and its 200 day moving average is $72.60. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.43 and a quick ratio of 1.00. The firm has a market capitalization of $1.98 billion, a P/E ratio of -29.32 and a beta of 1.12.

Minerals Technologies (NYSE:MTX - Get Free Report) last announced its earnings results on Thursday, July 30th. The basic materials company reported $1.60 EPS for the quarter, missing the consensus estimate of $1.64 by ($0.04). Minerals Technologies had a positive return on equity of 10.63% and a negative net margin of 3.13%. The firm had revenue of $548.40 million during the quarter, compared to the consensus estimate of $558.77 million. During the same quarter last year, the business earned $1.55 EPS. The business's revenue was up 3.7% compared to the same quarter last year. On average, research analysts expect that Minerals Technologies will post 5.84 EPS for the current year.

Key Minerals Technologies News

Here are the key news stories impacting Minerals Technologies this week:

• Positive Sentiment: Dividend increased for the fourth consecutive year: MTX raised its quarterly dividend 8.3%, from $0.12 to $0.13 per share, equivalent to $0.52 annually and a yield of approximately 0.8%. The dividend is payable December 3 to shareholders of record November 5. Management said the increase reflects confidence in steady cash flow, long-term growth and the company’s balance sheet. Minerals Technologies Announces Increase in Quarterly Dividend
• Neutral Sentiment: Earnings are approaching: MTX is scheduled to report quarterly results Thursday. Investors will focus on whether the company can improve on its latest report, when it posted adjusted EPS of $1.60 versus expectations of $1.64 and revenue of $548.4 million versus a $558.8 million consensus. Revenue nevertheless grew 3.7% year over year, providing some support ahead of the release. Minerals Technologies Set to Post Earnings
• Negative Sentiment: Bearish analyst action may weigh on sentiment: Zacks reportedly downgraded Minerals Technologies to “Strong Sell,” adding pressure as the company trades well below its 52-week high. Investors may also remain cautious because the latest quarterly results missed both earnings and revenue estimates. Zacks Cuts Minerals Technologies Stock to Strong Sell

About Minerals Technologies

Minerals Technologies Inc NYSE: MTX is a global specialty minerals and materials company that develops, produces and markets mineral-based products and engineered solutions for industrial and consumer applications. Its products are used in industries including paper and packaging, construction, environmental services, agriculture, food, personal care and automotive manufacturing.

The company supplies materials such as precipitated calcium carbonate, talc, bentonite, perlite and other specialty minerals.

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