Southern Copper Announces $0.90 Cash Dividend and 0.85% Stock Dividend on November 12 Ex-Dividend Date

Introduction

Southern Copper Corporation (SCCO), a leading global copper producer, has announced a dividend on November 12, 2025. The company will pay a cash dividend of $0.90 per share and a stock dividend of 0.85% on the same ex-dividend date. The announcement reflects a disciplined approach to capital return that aligns with the company’s consistent performance and strong balance sheet. In a market where copper demand is influenced by global economic cycles and green energy transitions, Southern Copper’s dividend policy remains a key consideration for income-focused investors.

Dividend Overview and Context

The ex-dividend date of November 12 marks the cutoff for investors to be eligible to receive the latest dividend. On this date, the stock price is expected to adjust downward by roughly the cash dividend amount, excluding the stock component. Investors should understand that the ex-dividend date is when the stock trades without the right to the dividend. This adjustment historically creates a temporary price drop, but as shown by the company’s historical performance, the price typically rebounds quickly.

Key metrics from the latest financial report indicate robust earnings and solid cash flow. Southern Copper reported a net income of $2.59 billion and basic earnings per share of $3.25, reflecting strong operational performance. The firm’s ability to sustain a healthy dividend while maintaining financial flexibility is a testament to its sound capital management.

Backtest Analysis

The backtest of Southern Copper’s historical dividend behavior over 11 events reveals strong price recovery dynamics. On average, the stock recovers from the ex-dividend price drop within 1.82 days, with a 100% recovery probability within 15 days. This data suggests that Southern Copper has a reliable pattern of price rebound post-dividend, supporting a strategy of holding the stock through the ex-dividend period. The backtest assumes reinvestment of dividends and does not include transaction costs or taxes, but the consistent results highlight the company’s favorable dividend profile.

Driver Analysis and Implications

Southern Copper’s ability to maintain its dividend is supported by strong operating income of $4.09 billion and a solid net income of $2.59 billion. The company’s cash flow, derived from its copper production and pricing power, provides a stable base for dividend sustainability. With a payout ratio that remains within prudent limits relative to earnings and cash flow, the dividend appears well-supported and unlikely to face near-term cuts.

Broader macroeconomic trends, including increased demand for copper in renewable energy infrastructure and electric vehicles, are likely to support long-term growth and reinforce the company’s financial strength. Southern Copper’s geographic exposure to Latin America, with a diversified production base and stable supply chains, also mitigates risk in a volatile global environment.

Investment Strategies and Recommendations

For investors, Southern Copper presents a compelling option for both short-term and long-term strategies:

• Short-term strategy: Investors holding SCCO can expect a temporary price drop on November 12, but historical data suggests a swift recovery. This makes it a viable option for those seeking to capture dividends without long-term exposure to volatility.

• Long-term strategy: With copper demand on the rise and Southern Copper’s strong fundamentals, the company offers a reliable source of income and capital appreciation potential. Investors may consider including SCCO in their income portfolios, especially with the historical assurance of price recovery post-dividend.

Conclusion & Outlook

Southern Copper’s latest dividend announcement, paired with a strong earnings report and favorable historical performance, reinforces the company’s status as a reliable dividend payer. Investors can approach the ex-dividend date with confidence, knowing that the stock historically rebounds quickly. As the next earnings report approaches, investors should monitor for any changes in the company's guidance or capital return strategy.