Gerdau S.A. (NYSE:GGB) Increases Dividend to $0.04 Per Share

Key Points

• Gerdau raised its quarterly dividend to $0.0361 per share, an 86.3% increase from the prior $0.02 payout, with an ex-dividend date of May 15 and an implied yield of about 3.2%.
• The company missed quarterly estimates (EPS $0.10 vs. $0.15 consensus; revenue $3.22B vs. $3.29B), but the dividend is well covered — a current payout ratio of ~13.2% and analyst forecasts imply a future payout ratio near 8.3%.
• Gerdau trades around $4.58 with a $9.15B market cap and a PE of ~28.6, and shows conservative liquidity and leverage metrics (current ratio 2.89, debt/equity 0.26).

Gerdau S.A. (NYSE:GGB - Get Free Report) announced a quarterly dividend on Tuesday, April 28th. Stockholders of record on Friday, May 15th will be paid a dividend of 0.0361 per share by the basic materials company on Tuesday, June 16th. This represents a c) dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Friday, May 15th. This is a 86.3% increase from Gerdau's previous quarterly dividend of $0.02.

Gerdau has increased its dividend by an average of 0.2%per year over the last three years. Gerdau has a payout ratio of 13.2% meaning its dividend is sufficiently covered by earnings. Research analysts expect Gerdau to earn $0.60 per share next year, which means the company should continue to be able to cover its $0.05 annual dividend with an expected future payout ratio of 8.3%.

Gerdau Price Performance

GGB stock opened at $4.58 on Wednesday. The business's fifty day moving average price is $3.86 and its 200 day moving average price is $3.80. Gerdau has a 12-month low of $2.48 and a 12-month high of $4.66. The company has a current ratio of 2.89, a quick ratio of 1.40 and a debt-to-equity ratio of 0.26. The company has a market capitalization of $9.15 billion, a PE ratio of 28.61 and a beta of 1.44.

Gerdau (NYSE:GGB - Get Free Report) last released its earnings results on Monday, April 27th. The basic materials company reported $0.10 earnings per share for the quarter, missing the consensus estimate of $0.15 by ($0.05). The firm had revenue of $3.22 billion during the quarter, compared to analyst estimates of $3.29 billion. Gerdau had a net margin of 2.40% and a return on equity of 6.83%. On average, sell-side analysts anticipate that Gerdau will post 0.51 EPS for the current year.

About Gerdau

Gerdau SA is a Brazilian-based steel producer engaged in the manufacture and distribution of long steel products for the construction, industrial and agricultural sectors. Established in 1901, the company operates an integrated network of electric-arc furnaces and rolling mills, producing reinforcement bars, wire rod, merchant bars and structural shapes. Gerdau's product portfolio also includes specialty long steel, high-yield reinforcement, rail, beams and steel coils, as well as value-added processing services such as cutting, bending and coating.

The company has expanded its footprint beyond Brazil, with significant operations in North America, South America and a presence in select European markets.

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