Teck Resources Ltd (NYSE:TECK) Raises Dividend to $0.09 Per Share

Key Points

• Teck Resources Ltd has increased its quarterly dividend by 1.9% to $0.09 per share, with shareholders receiving the payment on September 29th for those recorded by September 15th.
• The company reported a 12.3% increase in revenue year-over-year, with a quarterly revenue of $1.49 billion, although it missed analysts' expectations of $2.25 billion.
• Despite a volatile stock performance, analysts maintain an average rating of "Hold" for Teck Resources, with a current price target set at $60.89.

Teck Resources Ltd (NYSE:TECK - Get Free Report) TSE: TECK declared a quarterly dividend on Friday, July 25th, Wall Street Journal reports. Stockholders of record on Monday, September 15th will be paid a dividend of 0.0918 per share by the basic materials company on Monday, September 29th. This represents a $0.37 dividend on an annualized basis and a dividend yield of 1.11%. The ex-dividend date is Monday, September 15th. This is a 1.9% increase from Teck Resources's previous quarterly dividend of $0.09.

Teck Resources has a payout ratio of 19.9% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Teck Resources to earn $1.82 per share next year, which means the company should continue to be able to cover its $0.36 annual dividend with an expected future payout ratio of 19.8%.

Teck Resources Stock Performance

NYSE:TECK traded down $2.13 during midday trading on Friday, reaching $33.00. 12,487,023 shares of the company traded hands, compared to its average volume of 3,705,114. The company has a debt-to-equity ratio of 0.15, a current ratio of 3.36 and a quick ratio of 2.57. The firm has a market capitalization of $15.94 billion, a price-to-earnings ratio of 56.89, a price-to-earnings-growth ratio of 0.62 and a beta of 0.80. The company has a fifty day moving average price of $38.23 and a 200 day moving average price of $38.63. Teck Resources has a twelve month low of $28.32 and a twelve month high of $54.13.

Teck Resources (NYSE:TECK - Get Free Report) TSE: TECK last announced its quarterly earnings data on Thursday, July 24th. The basic materials company reported $0.27 EPS for the quarter, topping analysts' consensus estimates of $0.20 by $0.07. The company had revenue of $1.49 billion during the quarter, compared to the consensus estimate of $2.25 billion. Teck Resources had a return on equity of 4.53% and a net margin of 3.48%. The company's quarterly revenue was up 12.3% on a year-over-year basis. During the same quarter last year, the company earned $0.79 EPS. On average, analysts expect that Teck Resources will post 1.53 EPS for the current fiscal year.

Institutional Investors Weigh In On Teck Resources

Several hedge funds have recently modified their holdings of the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Teck Resources by 1.8% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 465,861 shares of the basic materials company's stock worth $16,971,000 after buying an additional 8,146 shares during the last quarter. AQR Capital Management LLC raised its holdings in shares of Teck Resources by 11.1% during the first quarter. AQR Capital Management LLC now owns 34,705 shares of the basic materials company's stock worth $1,264,000 after purchasing an additional 3,458 shares during the last quarter. Finally, Jones Financial Companies Lllp raised its holdings in shares of Teck Resources by 453.0% during the first quarter. Jones Financial Companies Lllp now owns 9,721 shares of the basic materials company's stock worth $354,000 after purchasing an additional 7,963 shares during the last quarter. Hedge funds and other institutional investors own 78.06% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Desjardins lowered shares of Teck Resources from a "buy" rating to a "hold" rating in a research note on Friday, July 18th. Veritas raised shares of Teck Resources to a "hold" rating in a research note on Friday, April 11th. Royal Bank Of Canada reduced their price target on shares of Teck Resources from $82.00 to $67.00 and set an "outperform" rating on the stock in a research report on Friday. CIBC downgraded shares of Teck Resources from a "sector outperform" rating to a "neutral" rating in a research note on Friday. Finally, National Bank Financial upgraded shares of Teck Resources from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 24th. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating, seven have given a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $60.89.

Teck Resources Company Profile

Teck Resources Limited engages in exploring for, acquiring, developing, and producing natural resources in Asia, Europe, and North America. The company operates through Steelmaking Coal, Copper, Zinc, and Energy segments. Its principal products include copper, zinc, steelmaking coal, and blended bitumen.

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