Commercial Metals raises cash dividend to $0.18

Commercial Metals Company (NYSE: CMC) said on Wednesday that its Board of Directors had authorized a regular quarterly cash dividend of $0.18 per share of common stock.

The latter represents an increase of 13% compared to the prior dividend payment.

The dividend will be paid on April 10th to shareholders of record as of the close of business on April 1st 2024, the company said.

“This announcement demonstrates the high degree of confidence on the part of management and our board of directors regarding the Company’s cash flow capabilities, financial position, and fundamental business outlook,” Peter R. Matt, President and Chief Executive Officer, said in a press release.

“It also reflects our commitment to providing CMC’s stockholders with an attractive level of cash distributions and follows the recent increase to the Company’s share repurchase authorization. We are optimistic about the future of CMC and aim to execute on a capital allocation strategy that prioritizes both value-accretive growth and competitive cash returns to stockholders.”

Stock Performance

The shares of Commercial Metals Company (CMC) closed 2.77% ($1.51) higher at $56.01 in New York on Wednesday, as they extended the gain from the previous market session.

The company’s total market cap now stands at $6.519 billion.

The shares of Commercial Metals Company (CMC) went up 3.60% in 2023, compared with a 10.99% gain for the benchmark index, NYSE Composite (NYA).

The company’s shares have risen 11.93% so far this year.

Analyst stock price forecast and recommendation

According to TipRanks, at least 2 out of 4 surveyed investment analysts had rated Commercial Metals Company’s stock as “Hold”, while other 2 – as “Buy”. The median price target on the stock stands at $58.33, which translates into a 4.14% upside compared to the closing price on Wednesday.

The high point of the analyst forecast range stands at $65.00.