Pan American Silver Corp. (NYSE:PAAS) Plans Dividend Increase - C$0.18 Per Share

Key Points

• Pan American Silver increased its quarterly dividend 2.2% to C$0.184 per share, payable September 4 to shareholders of record on August 24. The annualized dividend yield is approximately 1.4%.
• The company’s dividend appears well covered, with a 38.1% payout ratio and analysts expecting earnings of $5.42 per share next year versus an annual dividend of $0.72.
• Pan American Silver reported quarterly EPS of $0.73, below the $0.84 consensus estimate, although revenue rose 38.4% year over year. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $70.43.

Pan American Silver Corp. (NYSE:PAAS - Get Free Report) TSE: PAAS declared a quarterly dividend on Wednesday, August 12th. Shareholders of record on Monday, August 24th will be given a dividend of 0.184 per share by the basic materials company on Friday, September 4th. This represents a c) annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Monday, August 24th. This is a 2.2% increase from Pan American Silver's previous quarterly dividend of $0.18.

Pan American Silver has increased its dividend by an average of 0.2%annually over the last three years and has raised its dividend annually for the last 2 consecutive years. Pan American Silver has a payout ratio of 38.1% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Pan American Silver to earn $5.42 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 13.3%.

Pan American Silver Stock Up 1.3%

Shares of PAAS opened at $52.46 on Thursday. Pan American Silver has a one year low of $30.59 and a one year high of $69.99. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.11 and a current ratio of 2.84. The stock has a 50 day moving average price of $46.07 and a 200 day moving average price of $53.35. The stock has a market capitalization of $21.88 billion, a price-to-earnings ratio of 16.87, a PEG ratio of 4.48 and a beta of 0.73.

Pan American Silver (NYSE:PAAS - Get Free Report) TSE: PAAS last announced its quarterly earnings data on Wednesday, August 12th. The basic materials company reported $0.73 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.84 by ($0.11). Pan American Silver had a net margin of 31.66% and a return on equity of 19.50%. During the same quarter in the previous year, the firm posted $0.43 EPS. The business's quarterly revenue was up 38.4% on a year-over-year basis. Equities research analysts forecast that Pan American Silver will post 4.11 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several analysts have recently commented on PAAS shares. Wall Street Zen lowered shares of Pan American Silver from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 12th. Weiss Ratings downgraded Pan American Silver from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday, July 16th. TD Securities raised shares of Pan American Silver from a "hold" rating to a "buy" rating and set a $72.00 target price for the company in a research note on Monday, May 11th. Zacks Research lowered shares of Pan American Silver from a "hold" rating to a "strong sell" rating in a report on Friday, July 17th. Finally, Jefferies Financial Group dropped their target price on shares of Pan American Silver from $54.00 to $53.00 and set a "hold" rating for the company in a report on Monday, July 6th. Eight investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Pan American Silver presently has a consensus rating of "Moderate Buy" and an average target price of $70.43.

Pan American Silver Company Profile

Pan American Silver Corp. NYSE: PAAS is a Vancouver-based mining company and one of the world’s largest primary silver producers. The company’s core activities encompass the exploration, development, extraction and processing of silver, with significant by-product production of gold, zinc and lead. Pan American Silver maintains a vertically integrated operating model, covering the full mining value chain from resource discovery through to refined metal production.

With a geographic footprint concentrated across the Americas, Pan American Silver operates multiple mines in Mexico, Peru, Argentina and Bolivia, and is advancing several development and exploration projects in Chile and Ecuador.

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