Southern Copper Corporation (SCCO) to Issue Quarterly Dividend of $1.30 on November 19th

Southern Copper Corporation (NYSE:SCCO) announced a quarterly dividend on Thursday, October 15th. Investors of record on Tuesday, November 3rd will be given a dividend of $1.30 per share by the basic materials company on Thursday, November 19th. This represents a $5.20 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend 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 payment by an average of 0.2% annually over the last three years. Southern Copper has a dividend payout ratio of 117.1% indicating that 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 Trading Down 7.4%

NYSE:SCCO opened at $177.60 on Friday. The stock has a fifty day moving average price of $200.92 and a 200 day moving average price of $187.49. The company has a current ratio of 5.06, a quick ratio of 4.56 and a debt-to-equity ratio of 0.63. The firm has a market cap of $148.18 billion, a PE ratio of 23.25, a price-to-earnings-growth ratio of 1.64 and a beta of 1.11. Southern Copper has a 12-month low of $119.25 and a 12-month high of $223.88.

Southern Copper’s stock is scheduled to split on Tuesday, November 3rd. The 1.0106-1 split was recently announced. The newly minted shares will be issued to shareholders after the market closes on Monday, November 2nd.

Southern Copper (NYSE:SCCO) last issued its earnings results on Wednesday, October 21st. The basic materials company reported $2.15 EPS for the quarter, topping the consensus estimate of $2.03 by $0.12. The company had revenue of $4.70 billion for the quarter, compared to analyst estimates of $4.49 billion. Southern Copper had a net margin of 37.16% and a return on equity of 53.46%. During the same period in the previous year, the firm earned $1.35 EPS. Sell-side analysts anticipate that Southern Copper will post 8.03 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of research firms recently issued reports on SCCO. Barclays set a $165.00 target price on Southern Copper and gave the stock an “underweight” rating in a research note on Monday, October 26th. Citigroup reaffirmed a “positive” rating on shares of Southern Copper in a research note on Wednesday, July 15th. Morgan Stanley reaffirmed an “underweight” rating and set a $170.00 price objective on shares of Southern Copper in a report on Wednesday, October 7th. CICC Research cut Southern Copper to a “market perform” rating in a research note on Sunday, July 26th. Finally, UBS Group reaffirmed a “sell” rating and issued a $180.00 target price (up from $160.00) on shares of Southern Copper in a report on Thursday, October 8th. Two analysts have rated the stock with a Buy rating, four have given a Hold rating and seven have given a Sell rating to the company. According to MarketBeat, Southern Copper presently has an average rating of “Reduce” and a consensus price target 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.