PITTSBURGH - Alcoa (NYSE:AA) Corporation (NYSE: AA; ASX: AAI), a major player in the production of bauxite, alumina, and aluminum products, has announced a quarterly cash dividend. The company's Board of Directors declared a dividend of $0.10 per share for both common and Series A convertible preferred stock. Eligible stockholders of record by the close of business on October 29, 2024, will receive the dividend payment on November 15, 2024.
Alcoa, known for its historical role in making aluminum an accessible and essential material, continues to focus on innovation and sustainability within the industry. The company emphasizes a values-based approach, prioritizing integrity, operational excellence, and a commitment to its workforce and leadership.
The announcement reflects Alcoa's ongoing commitment to providing value to its shareholders. The company has stated that it will continue to communicate future developments and financial performance through various channels, including its website, press releases, SEC filings, and public calls and webcasts.
This dividend declaration is part of Alcoa's regular financial activities and represents a continued effort to distribute profits back to its investors. As the information is based on a press release statement, investors and stakeholders are encouraged to follow official Alcoa announcements for further details on company developments.
In other recent news, Alcoa Corp has been the subject of significant developments. BofA Securities upgraded Alcoa's stock from Neutral to Buy, increasing the price target to $52 from $43, based on a positive outlook on aluminum prices for 2025 and 2026. This upgrade reflects Alcoa's potential to benefit from anticipated increases in alumina prices, a key raw material in aluminum production.
On the other hand, JPMorgan reinstated coverage on Alcoa with a Neutral rating, adjusting the price target to $36 from $32, citing a lack of near-term catalysts for aluminum pricing. However, the bank acknowledged Alcoa's efforts to streamline operations and achieve cost savings, positioning it on its Positive Catalyst Watch due to an expected decision about the company's San Ciprian complex.
In terms of mergers and acquisitions, Alcoa sold its 25.1% interest in the Ma'aden Rolling Company to the Saudi Arabian Mining Company for $1.1 billion, providing a substantial cash infusion. The company also completed the acquisition of joint venture partner Alumina (OTC:AWCMY) Limited, expected to enhance its capital structure and generate significant savings.
Lastly, Alcoa has implemented a $645 million improvement program aimed at reducing costs and enhancing operations at specific sites. The company is also making strides in sustainability with advancements in the ELYSIS green aluminum production technology, planning future demonstrations and trials of this technology. These recent developments highlight Alcoa's dedication to streamlining operations, strengthening its financial position, and prioritizing sustainable practices.
InvestingPro Insights
Alcoa's recent dividend announcement aligns with its current financial position and market performance. According to InvestingPro data, Alcoa's dividend yield stands at 0.97%, with the ex-date of the last dividend being August 12, 2024. This consistent dividend payout, despite challenging market conditions, demonstrates the company's commitment to shareholder returns.
InvestingPro Tips highlight that Alcoa has shown a strong return over the last year, with a 56.15% price total return. This impressive performance is further underscored by the company's 22.61% year-to-date price total return. These figures suggest that Alcoa has been resilient in the face of industry headwinds.
However, it's important to note that Alcoa operates with a moderate level of debt and has not been profitable over the last twelve months. The company's revenue for the last twelve months as of Q2 2024 was $10.7 billion, with a slight revenue decline of 1.53% during this period. Despite these challenges, analysts predict that Alcoa will be profitable this year, which could potentially support the company's dividend strategy going forward.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights on Alcoa's financial health and market position. There are 11 additional InvestingPro Tips available for Alcoa, providing a deeper understanding of the company's prospects and potential risks.
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