Southern Copper Corporation (NYSE:SCCO) Declares Dividend Increase - $1.10 Per Share

Key Points

• Southern Copper raised its quarterly dividend 10% to $1.10 per share from $1.00. Shareholders of record on August 11 will receive the dividend on August 27, representing a 2.2% annualized yield.
• The company’s current payout ratio is high at 99.1%, though analysts expect improved coverage next year with projected earnings of $7.01 per share versus an annual dividend of $4.40.
• Southern Copper also announced a 1.012-for-1 stock split, with shares distributed after the August 10 close and trading on a split-adjusted basis August 11. Its latest quarterly EPS of $2.01 exceeded estimates, while revenue rose 40.6% year over year to $4.29 billion.

Southern Copper Corporation (NYSE:SCCO - Get Free Report) declared a quarterly dividend on Thursday, July 16th. Investors of record on Tuesday, August 11th will be given a dividend of 1.10 per share by the basic materials company on Thursday, August 27th. This represents a c) annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend is Tuesday, August 11th. This is a 10.0% increase from Southern Copper's previous quarterly dividend of $1.00.

Southern Copper has raised its dividend payment by an average of 0.2%per year over the last three years. Southern Copper has a payout ratio of 99.1% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Equities analysts expect Southern Copper to earn $7.01 per share next year, which means the company should continue to be able to cover its $4.40 annual dividend with an expected future payout ratio of 62.8%.

Southern Copper Stock Up 3.3%

Southern Copper stock opened at $199.38 on Friday. The stock has a market cap of $164.70 billion, a PE ratio of 29.15, a P/E/G ratio of 1.71 and a beta of 1.11. The company has a debt-to-equity ratio of 0.63, a current ratio of 5.06 and a quick ratio of 3.89. The stock's fifty day moving average is $181.84 and its two-hundred day moving average is $184.71. Southern Copper has a 1-year low of $92.57 and a 1-year high of $223.88.

Southern Copper's stock is set to split on the morning of Tuesday, August 11th. The 1.012-1 split was recently announced. The newly minted shares will be distributed to shareholders after the closing bell on Monday, August 10th.

Southern Copper (NYSE:SCCO - Get Free Report) last released its quarterly earnings data on Wednesday, July 22nd. The basic materials company reported $2.01 EPS for the quarter, beating analysts' consensus estimates of $1.95 by $0.06. Southern Copper had a return on equity of 49.04% and a net margin of 35.87%.The business had revenue of $4.29 billion for the quarter, compared to the consensus estimate of $4.37 billion. The business's revenue was up 40.6% on a year-over-year basis. On average, sell-side analysts expect that Southern Copper will post 7.63 EPS for the current fiscal year.

Southern Copper Company Profile

Southern Copper Corporation NYSE: SCCO is a large, integrated copper producer whose operations span the full value chain from exploration and mining to smelting, refining and the sale of copper and other metal products. The company produces a range of copper products including copper concentrate and refined cathodes, and recovers valuable byproducts such as molybdenum, silver and zinc. Southern Copper concentrates on high-volume, long-life assets designed to support steady production and processing capabilities.

Southern Copper's operations are concentrated in Peru and Mexico, where it owns and operates multiple large-scale mining and processing facilities.

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