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FMC Corp (FMC) Boosts Shareholder Returns, Raises Dividend

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FMC Corporation (FMC - Free Report) announced a hike in its quarterly dividends. The company’s board declared a regular quarterly dividend of 48 cents per share, up around 9% from the earlier quarterly dividend of 44 cents. The dividend is payable on Jan 21, 2021, to shareholders of record as of the close of business on Dec 31, 2020.  

Per the company, this move reflects its policy to raise the dividend by at least the same rate of net income growth, highlighting its overall commitment to return excess cash to shareholders.

FMC Corp’s shares are up 20.8% in the past year compared with the industry’s 10.4% rise.

 

In third-quarter 2020 earnings call, the company issued guidance for the fourth quarter and 2020.

For fourth-quarter 2020, it expects revenues in the band of $1.23-$1.29 billion, which suggests an increase of 5% at the midpoint compared with fourth-quarter 2019. Adjusted earnings are projected in the range of $1.70-$1.82 per share, same as fourth-quarter 2019 levels at the midpoint.

For 2020, FMC Corp projects revenues between $4.72 billion and $4.78 billion, which indicates a rise of 3% at the midpoint from 2019 levels.

The company raised its adjusted earnings per share guidance for 2020 in the range of $6.45-$6.57 from its prior view of $6.28-$6.62. The revised guidance reflects an increase of 7% at the midpoint compared with 2019 level and also 6 cents higher than the earlier guidance. The company expects earnings to be driven by higher volumes in Latin America and Asia, global pricing and cost discipline.

Zacks Rank & Key Picks

FMC Corp currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Pretium Resources, Inc. (PVG - Free Report) , BHP Group (BHP - Free Report) and Silvercorp Metals Inc. (SVM - Free Report) , all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Pretium Resources has an expected earnings growth rate of 25.5% for 2020. Its shares have returned 9.5% in the past year.

BHP Group has an expected earnings growth rate of 32.4% for fiscal 2021. The company’s shares have gained 17.5% in the past year.

Silvercorp Metals has an expected earnings growth rate of 40% for fiscal 2021. The company’s shares have increased 17.2% in the past year.

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