Alcoa Co. (NYSE:AA) to Issue $0.10 Quarterly Dividend

Alcoa Co. (NYSE:AA) announced a quarterly dividend on Thursday, February 20th, RTT News reports. Stockholders of record on Tuesday, March 4th will be given a dividend of 0.10 per share by the industrial products company on Thursday, March 20th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.07%.

Alcoa has raised its dividend payment by an average of 58.7% per year over the last three years. Alcoa has a payout ratio of 11.9% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Alcoa to earn $3.17 per share next year, which means the company should continue to be able to cover its $0.40 annual dividend with an expected future payout ratio of 12.6%.

Alcoa Stock Performance

Shares of AA traded up $1.08 during midday trading on Thursday, reaching $37.26. 5,980,290 shares of the stock were exchanged, compared to its average volume of 5,073,336. Alcoa has a twelve month low of $24.86 and a twelve month high of $47.77. The stock’s 50 day simple moving average is $37.07 and its 200 day simple moving average is $37.77. The company has a market cap of $9.63 billion, a P/E ratio of -232.85, a PEG ratio of 0.20 and a beta of 2.43. The company has a quick ratio of 0.86, a current ratio of 1.45 and a debt-to-equity ratio of 0.48.

Alcoa (NYSE:AA) last issued its quarterly earnings results on Wednesday, January 22nd. The industrial products company reported $1.04 earnings per share for the quarter, topping analysts’ consensus estimates of $0.91 by $0.13. Alcoa had a net margin of 0.50% and a return on equity of 5.54%. On average, sell-side analysts expect that Alcoa will post 4.43 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on AA. Bank of America lifted their price target on shares of Alcoa to $58.00 and gave the company a “buy” rating in a report on Friday, January 24th. BMO Capital Markets lifted their price target on shares of Alcoa to $43.00 and gave the company a “hold” rating in a report on Friday, January 17th. Jefferies Financial Group cut their price objective on Alcoa from $50.00 to $45.00 and set a “buy” rating on the stock in a report on Monday, January 6th. JPMorgan Chase & Co. raised their price objective on Alcoa from $38.00 to $40.00 and gave the company a “neutral” rating in a report on Thursday, January 16th. Finally, B. Riley upgraded shares of Alcoa to a “strong-buy” rating in a report on Tuesday, January 21st. Four investment analysts have rated the stock with a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $46.55.

About Alcoa

Alcoa Corporation, together with its subsidiaries, produces and sells bauxite, alumina, and aluminum products in the United States, Spain, Australia, Iceland, Norway, Brazil, Canada, and internationally. The company operates through two segments, Alumina and Aluminum. It engages in bauxite mining operations; and processes bauxite into alumina and sells it to customers who process it into industrial chemical products, as well as aluminum smelting and casting businesses.