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Methanex (MEOH) Announces a 20% Hike in Quarterly Dividend

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Methanex Corporation’s (MEOH - Free Report) Board has approved a 20% hike in its quarterly dividend to 17.5 cents per share from 14.5 cents per share. The raised dividend will apply to the dividend payable on Sep 30, 2022, to holders of common shares of record as of Sep 16, 2022.

Methanex stated that the 20% dividend increase strengthens its commitment to return cash to shareholders and underscores its assets’ strong cash flow generation capability.

The company’s cash and cash equivalents increased around 31.4% year-over-year to $1,125 million at the end of the first quarter.

Cash flow from operating activities was $325 million for the quarter, up around 94.6% year over year. The company paid out dividends worth $9 million during the first quarter.

Shares of Methanex have gained 16.9% in the past year against a 9.3% decline of the industry.

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In its last earnings call, Methanex stated that it forecasts production for 2022 to be roughly 1.5 million tons in New Zealand. The company projects production in 2022 to be roughly 1 million tons in Chile. The construction of the Geismar 3 project is progressing according to plan and is on track to be completed on time and within budget by late 2023 or early 2024.

 

Zacks Rank & Key Picks

Methanex currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are Albemarle Corporation (ALB - Free Report) , Cabot Corporation (CBT - Free Report) and Allegheny Technologies Inc. (ATI - Free Report) .

Albemarle has a projected earnings growth rate of 232.2% for the current year. The Zacks Consensus Estimate for ALB's current-year earnings has been revised 18% upward in the past 60 days.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5%, on average. ALB has gained around 12.7% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 22.5% for the current year. The Zacks Consensus Estimate for CBT's earnings for the current year has been revised 6% upward in the past 60 days.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 24.3% over a year.

Allegheny has a projected earnings growth rate of 1,046.2% for the current year. The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 15.5% upward in the past 60 days.

Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 128.9%. ATI has gained 19.7% in a year. The company carries a Zacks Rank #2.

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