Kaiser Aluminum has announced a forthcoming dividend payment of $0.770 per share, with an ex-dividend date set for Jul 25, 2025, and the payment date slated for Aug 15, 2025. This dividend is cash-based, consistent with the type declared in the previous cycle. Interestingly, the current dividend surpasses the average of the last ten distributions, which stands at $0.473 per share. It mirrors the company's previous dividend issued on May 15, 2025, at the same rate of $0.770 per share, also as a cash dividend.
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Corporation's investors are anticipating a dividend yield of 3.4%, which remains above the industry average despite the company's recent share price surge of 67% over the past three months. Analysts have expressed concerns over the sustainability of such dividends, given the company is paying out more than its earnings while lacking free cash flow. Additionally, forecasts suggest a potential 4.6% drop in earnings per share over the next year, which could increase the payout ratio to 111%, putting future dividends at risk unless earnings improve. Despite the company's consistent dividend payment history, with an annual growth rate of 8.2% over the past decade, concerns about falling earnings per share suggest that dividend growth may be challenging to maintain. Analysts have cautioned that Kaiser Aluminum may not be the most reliable dividend stock due to the high payout ratio.
As of late, Kaiser Aluminum's earnings are projected to grow significantly, with an increase from $5.140 to $6.900 per share anticipated in the coming year. The company's stock was recently trading at $89.680, reflecting a slight decline. Within the past week, Kaiser Aluminum announced its quarterly dividend payment, adhering to its schedule and demonstrating its commitment to shareholder returns. Moreover, the company has reported a revenue of $0.777 billion and a net income of $21.600 million for Q1 2025, with an EPS of $1.310. These figures underscore its strong performance in the industry, despite existing concerns about dividend sustainability.
In conclusion, Kaiser Aluminum remains a focal point for income investors, with the ex-dividend date of Jul 25, 2025 marking the last opportunity for investors to purchase shares and receive the upcoming dividend. Any acquisitions beyond this date will not qualify for the current dividend payout.
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