Southern Copper Corp's Dividend Analysis
Insights into Southern Copper Corp's Upcoming Dividend Payment
Southern Copper Corp (NYSE:SCCO) recently announced a dividend of $0.8 per share, payable on 2024-02-29, with the ex-dividend date set for 2024-02-12. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Southern Copper Corp's dividend performance and assess its sustainability.
What Does Southern Copper Corp Do?
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Southern Copper Corp is an integrated producer of copper and other minerals and operates mining, smelting, and refining facilities in Peru and Mexico. Its production includes copper, molybdenum, zinc, and silver. The company operates through the following segments: Peruvian operations, Mexican open-pit operations, and Mexican underground mining operations. Southern Copper generates the majority of its revenue from the sale of copper and the rest from the sale of non-copper products, such as molybdenum, silver, zinc, lead, and gold. Its geographical segments are The Americas, Europe, and Asia.
A Glimpse at Southern Copper Corp's Dividend History
Southern Copper Corp has maintained a consistent dividend payment record since 1996. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Southern Copper Corp's Dividend Yield and Growth
As of today, Southern Copper Corp currently has a 12-month trailing dividend yield of 4.99% and a 12-month forward dividend yield of 3.99%. This suggests an expectation of decrease in dividend payments over the next 12 months.
Over the past three years, Southern Copper Corp's annual dividend growth rate was 38.70%. Extended to a five-year horizon, this rate decreased to 27.00% per year. And over the past decade, Southern Copper Corp's annual dividends per share growth rate stands at an impressive 30.10%.
Based on Southern Copper Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Southern Copper Corp stock as of today is approximately 16.52%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Southern Copper Corp's dividend payout ratio is 127%, which may suggest that the company's dividend may not be sustainable.