Ternium Announces $0.90 Dividend per Share on Ex-Dividend Date of November 10

Introduction

Ternium, a leading integrated steel producer with a presence across Latin America and the U.S., has a long-standing tradition of returning value to shareholders through dividends. Despite a challenging market environment marked by fluctuating steel prices and margin pressures, the company continues to uphold its dividend policy with a $0.90 per share cash dividend. This aligns with the industry’s mixed approach to payouts, where some firms have cut dividends to preserve liquidity while others maintain or even increase distributions.

In the weeks leading up to the ex-dividend date of November 10, 2025, Ternium’s shares have shown moderate volatility, with investors closely watching the firm’s latest financial report and broader macroeconomic signals.

Dividend Overview and Context

The dividend yield and ex-dividend date are critical for investors considering Ternium’s shares. A $0.90 per share cash dividend represents a meaningful distribution, especially in the context of recent market uncertainties. The ex-dividend date of November 10, 2025, will affect all investors who hold shares before this date and will typically result in a one-time price adjustment equivalent to the dividend amount on the stock's opening price the following day.

For investors, this is a strategic point to evaluate, particularly for those managing dividend income streams or implementing dividend capture strategies.

Backtest Analysis

The backtest analysis of Ternium’s stock (TX) reveals that the share price tends to recover the value lost on the ex-dividend date within an average of 3.6 days, with an 83% probability of full recovery within 15 days. This was observed across six dividend events, showcasing a consistent and reliable pattern in post-dividend price behavior.

While the backtest does not explicitly include cumulative returns, max drawdown, or benchmark comparisons, it suggests that the stock's volatility and liquidity are favorable for short-term strategies involving dividend capture.

Driver Analysis and Implications

Ternium's latest financial report shows that despite strong total revenue of $13.8 billion, the company reported a net loss of $159 million, with a significant portion of this attributed to income taxes and net interest income. However, the company maintained a cash dividend of $0.90 per share, indicating a strong commitment to its dividend policy despite a negative net income.

This decision suggests confidence in long-term operational resilience and cash flow generation, even in the face of short-term headwinds. The decision to pay a dividend while reporting a net loss could signal to investors that the company is prioritizing shareholder returns over retaining earnings, which may contrast with more conservative peers in the steel sector.

Investment Strategies and Recommendations

Short-term investors may consider dividend capture strategies, given the consistent price recovery observed in the backtest. This involves purchasing shares before the ex-dividend date and selling shortly afterward to capture the dividend and offset the price drop.

Long-term investors should assess Ternium’s broader financial health and industry positioning, especially in light of its recent earnings performance. With a strong balance sheet and long-standing dividend history, Ternium could remain a compelling option for income-oriented portfolios, provided macroeconomic conditions stabilize.

Conclusion & Outlook

Ternium’s $0.90 cash dividend on the ex-dividend date of November 10, 2025, underscores its commitment to shareholder returns. While the company’s most recent earnings report shows a net loss, the consistent dividend payment and favorable price behavior post-dividend suggest a resilient business model. Investors are advised to monitor the next earnings report and any further updates on capital allocation and operational performance in the coming months.