Ternium S.A. (TX) to Issue Semi-annual Dividend of $1.80 on May 14th

Ternium S.A. (NYSE:TX) announced a semi-annual dividend on Wednesday, February 19th, Wall Street Journal reports. Investors of record on Friday, May 9th will be paid a dividend of 1.80 per share by the basic materials company on Wednesday, May 14th. This represents a yield of 10.3%. The ex-dividend date is Friday, May 9th. This is a boost from Ternium’s previous semi-annual dividend of $0.09.

Ternium has increased its dividend by an average of 2.3% annually over the last three years. Ternium has a payout ratio of 28.0% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Ternium to earn $6.05 per share next year, which means the company should continue to be able to cover its $1.80 annual dividend with an expected future payout ratio of 29.8%.

Ternium Price Performance

Shares of TX opened at $29.76 on Friday. The stock has a 50 day simple moving average of $29.49 and a 200 day simple moving average of $32.62. Ternium has a 52-week low of $28.00 and a 52-week high of $44.44. The company has a current ratio of 2.88, a quick ratio of 1.67 and a debt-to-equity ratio of 0.11.

Ternium (NYSE:TX) last issued its quarterly earnings data on Tuesday, February 18th. The basic materials company reported ($0.42) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.97 by ($1.39). The company had revenue of $3.88 billion for the quarter, compared to the consensus estimate of $4.18 billion. Ternium had a positive return on equity of 1.82% and a negative net margin of 0.31%. On average, sell-side analysts forecast that Ternium will post 4.37 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on TX. The Goldman Sachs Group reduced their price objective on Ternium from $45.00 to $39.00 and set a “buy” rating for the company in a research report on Thursday, February 6th. StockNews.com downgraded Ternium from a “buy” rating to a “hold” rating in a research report on Thursday, November 14th.

About Ternium

Ternium SA, together with its subsidiaries, manufactures and distributes steel products in Mexico, Southern Region, Brazil, and internationally. It operates through three segments: Steel, Mining, and Usiminas. The Steel segment offers slabs, hot and cold rolled products, coated products, roll formed and tubular products, bars, billets, and other products.