Pan American Silver Corp. (NYSE:PAAS) to Issue $0.18 Quarterly Dividend

Key Points

• Dividend declared: Pan American Silver announced a quarterly dividend of $0.18 per share (annualized $0.72) payable June 1 to shareholders of record May 19, implying a yield of about 1.3% and an ex-dividend date of May 19.
• Dividend coverage strong: The payout ratio is 38.1% and analysts forecast $5.17 EPS next year, implying the company should comfortably cover the dividend with an expected future payout ratio near 13.9%.
• Q results and market reaction: PAAS reported $1.09 EPS (beat) with revenue of $1.15B (+49.3% YoY), and the stock jumped about 10.9% to $56.00 amid an average analyst rating of "Moderate Buy" and an average target of $59.67.

Pan American Silver Corp. (NYSE:PAAS - Get Free Report) TSE: PAAS declared a quarterly dividend on Tuesday, May 5th. Stockholders of record on Tuesday, May 19th will be given a dividend of 0.18 per share by the basic materials company on Monday, June 1st. This represents a c) annualized dividend and a dividend yield of 1.3%. The ex-dividend date is Tuesday, May 19th.

Pan American Silver has increased its dividend by an average of 0.2%annually over the last three years and has increased its dividend annually for the last 2 consecutive years. Pan American Silver has a dividend payout ratio of 38.1% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Pan American Silver to earn $5.17 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 13.9%.

Pan American Silver Trading Up 10.9%

Shares of PAAS traded up $5.48 during trading hours on Wednesday, hitting $56.00. The company had a trading volume of 5,762,392 shares, compared to its average volume of 7,566,924. The firm has a market cap of $23.60 billion, a P/E ratio of 22.38, a P/E/G ratio of 0.42 and a beta of 0.65. The stock's 50 day moving average price is $56.79 and its 200 day moving average price is $51.44. The company has a quick ratio of 1.97, a current ratio of 2.69 and a debt-to-equity ratio of 0.11. Pan American Silver has a 52-week low of $22.08 and a 52-week high of $69.99.

Pan American Silver (NYSE:PAAS - Get Free Report) TSE: PAAS last released its quarterly earnings data on Tuesday, May 5th. The basic materials company reported $1.09 EPS for the quarter, topping the consensus estimate of $1.06 by $0.03. The firm had revenue of $1.15 billion for the quarter, compared to the consensus estimate of $1.25 billion. Pan American Silver had a return on equity of 16.38% and a net margin of 27.07%.The company's quarterly revenue was up 49.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.42 earnings per share. On average, research analysts predict that Pan American Silver will post 4.45 EPS for the current year.

Analyst Ratings Changes

PAAS has been the topic of several analyst reports. Wall Street Zen upgraded Pan American Silver from a "buy" rating to a "strong-buy" rating in a report on Saturday. Jefferies Financial Group cut their target price on Pan American Silver from $58.00 to $54.00 and set a "hold" rating on the stock in a research note on Wednesday, January 21st. Canadian Imperial Bank of Commerce set a $88.00 target price on Pan American Silver and gave the stock an "outperform" rating in a research note on Wednesday, February 4th. Royal Bank Of Canada reissued an "outperform" rating and issued a $75.00 target price on shares of Pan American Silver in a research note on Tuesday, April 28th. Finally, Scotiabank raised their target price on Pan American Silver from $47.00 to $64.00 and gave the stock an "outperform" rating in a research note on Monday, January 26th. Six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $59.67.

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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