Southern Copper Corporation (NYSE:SCCO) Raises Dividend to $1.30 Per Share

Southern Copper Corporation (NYSE:SCCO) announced a quarterly dividend on Thursday, October 15th. Shareholders of record on Tuesday, November 3rd will be paid a dividend of $1.30 per share by the basic materials company on Thursday, November 19th. This represents a $5.20 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Tuesday, November 3rd. This is a 18.2% increase from Southern Copper’s previous quarterly dividend of $1.10.

Southern Copper has increased its dividend by an average of 0.2% per year over the last three years. Southern Copper has a dividend payout ratio of 117.1% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Southern Copper to earn $7.82 per share next year, which means the company should continue to be able to cover its $5.20 annual dividend with an expected future payout ratio of 66.5%.

Southern Copper Price Performance

Shares of SCCO opened at $177.60 on Friday. Southern Copper has a fifty-two week low of $119.25 and a fifty-two week high of $223.88. The firm’s 50 day moving average price is $200.92 and its 200 day moving average price is $187.49. The company has a market cap of $148.18 billion, a P/E ratio of 23.25, a PEG ratio of 1.64 and a beta of 1.11. The company has a quick ratio of 4.56, a current ratio of 5.06 and a debt-to-equity ratio of 0.63.

Southern Copper shares are set to split before the market opens on Tuesday, November 3rd. The 1.0106-1 split was recently announced. The newly issued shares will be distributed to shareholders after the market closes on Monday, November 2nd.

Southern Copper (NYSE:SCCO) last issued its quarterly earnings results on Wednesday, October 21st. The basic materials company reported $2.15 EPS for the quarter, beating the consensus estimate of $2.03 by $0.12. Southern Copper had a net margin of 37.16% and a return on equity of 53.46%. The company had revenue of $4.70 billion during the quarter, compared to analysts’ expectations of $4.49 billion. During the same quarter last year, the company posted $1.35 EPS. On average, research analysts forecast that Southern Copper will post 8.03 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several research analysts recently commented on the company. CICC Research cut Southern Copper to a “market perform” rating in a research note on Sunday, July 26th. Weiss Ratings lowered Southern Copper from a “buy (b+)” rating to a “buy (b)” rating in a research report on Friday. Citigroup reiterated a “positive” rating on shares of Southern Copper in a research note on Wednesday, July 15th. Wells Fargo & Company set a $193.00 price objective on Southern Copper and gave the stock an “equal weight” rating in a research report on Friday, October 23rd. Finally, Zacks Research lowered shares of Southern Copper from a “strong-buy” rating to a “hold” rating in a research note on Friday, August 7th. Two research analysts have rated the stock with a Buy rating, four have given a Hold rating and seven have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Reduce” and a consensus target price of $160.95.

Southern Copper Company Profile

Southern Copper Corporation (NYSE:SCCO) is a mining and metals company engaged primarily in the exploration, development, extraction, processing and production of copper. The company also produces molybdenum, zinc, silver and lead, along with related byproducts. Its operations include open-pit mines, underground mines, concentrators, smelters, refineries and other processing facilities.

Southern Copper operates mainly in Peru and Mexico. Its Peruvian assets include the Toquepala and Cuajone copper mines, while its Mexican operations include the Buenavista del Cobre and La Caridad mines, as well as associated processing and infrastructure facilities.