Freeport-McMoRan (NYSE:FCX) Is Paying Out A Dividend Of $0.15
The board of Freeport-McMoRan Inc. (NYSE:FCX[1]) has announced that it will pay a dividend on the 1st of May, with investors receiving £0.15 per share. Including this payment, the dividend yield on the stock will be 1.6%, which is a modest boost for shareholders' returns. Advertisement
Freeport-McMoRan's Payment Could Potentially Have Solid Earnings Coverage
While yield is important, another factor to consider about a company's dividend is whether the current payout levels are feasible.
The last dividend was quite easily covered by Freeport-McMoRan's earnings. This indicates that quite a large proportion of earnings is being invested back into the business. Over the next year, EPS is forecast to expand by 74.9%.
If the dividend continues on this path, the payout ratio could be 24% by next year, which we think can be pretty sustainable going forward.
NYSE:FCX Historic Dividend March 30th 2025
See our latest analysis for Freeport-McMoRan[2]
Dividend Volatility
The company's dividend history has been marked by instability, with at least one cut in the last 10 years. Since 2015, the annual payment back then was £1.25, compared to the most recent full-year payment of £0.60. The dividend has shrunk at around 7.1% a year during that period.
Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems.
The Dividend Looks Likely To Grow
Dividends have been going in the wrong direction, so we definitely want to see a different trend in the earnings per share. It's encouraging to see that Freeport-McMoRan has been growing its earnings per share at 18% a year over the past five years. Since earnings per share is growing at an acceptable rate, and the payout policy is balanced, we think the company is positioning itself well to grow earnings and dividends in the future.
Freeport-McMoRan Looks Like A Great Dividend Stock
Overall, we like to see the dividend staying consistent, and we think Freeport-McMoRan might even raise payments in the future.
The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All of these factors considered, we think this has solid potential as a dividend stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable.
Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Companies that are growing earnings tend to be the best dividend stocks over the long term. See what the 16 analysts we track are forecasting for Freeport-McMoRan for free with public analyst estimates for the company.
If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.[3][4]
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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References
- ^ NYSE:FCX (simplywall.st)
- ^ See our latest analysis for Freeport-McMoRan (simplywall.st)
- ^ analyst estimates for the company (simplywall.st)
- ^ curated list of high yield dividend stocks. (simplywall.st)
- ^ Explore Now for Free (simplywall.st)
- ^ Get in touch (investor-research.typeform.com)