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Commercial Metals Company (NYSE:) is due to trade ex-dividend soon, with the cut-off for eligibility set for Tuesday, October 25th. The company has announced a dividend of $0.16 per share, which is scheduled for distribution on November 9th.
The current stock price of Commercial Metals stands at $40.34, and it has a trailing yield of approximately 1.6%. In the previous year, the company distributed dividends amounting to $0.64 per share. According to InvestingPro data, the company has a market cap of 4720M USD and a P/E ratio of 5.56, indicating a potentially undervalued stock.
The sustainability of these dividends is underpinned by both profit and cash flow. The payout ratio stands at 8.7%, indicating a significant portion of the earnings being distributed as dividends. Furthermore, only 10% of the free cash flow is being utilized, ensuring adequate liquidity for the company’s operations. This aligns with the InvestingPro Tips that indicate strong earnings and cash flows can sufficiently cover interest payments, and the company has raised its dividend for 3 consecutive years.
In addition to its robust dividend policy, Commercial Metals has demonstrated impressive growth in recent years. The company’s annual earnings have grown at an exceptional rate of 45% over the past five years. This growth is reflected in the InvestingPro data, with a return on assets of 13.35% for the last twelve months.
This solid growth trajectory coupled with a sound reinvestment approach positions Commercial Metals as a strong growth prospect in its sector. The upcoming ex-dividend date presents an opportunity for investors looking to participate in the company’s future growth while benefiting from its consistent dividend payouts.
InvestingPro Tips also suggest that the management has been aggressively buying back shares and the stock is currently trading near its 52-week low. This could potentially be a good entry point for investors. For more insightful tips like these, consider exploring the InvestingPro product that includes additional tips. There are 19 more tips listed on InvestingPro for Commercial Metals Company that could be beneficial for potential investors.
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