Over the last 7 days, the United States market has risen by 5.8%, contributing to a 4.8% climb over the past year, with earnings forecasted to grow by 14% annually. In this dynamic environment, identifying strong dividend stocks like A-Mark Precious Metals can be a prudent strategy for investors seeking reliable income and potential growth opportunities.
Overview: A-Mark Precious Metals, Inc., along with its subsidiaries, operates as a precious metals trading company and has a market cap of approximately $588.14 million.
Operations: A-Mark Precious Metals, Inc. generates revenue primarily through its Direct-To-Consumer segment, which accounts for $1.81 billion, and its Wholesale Sales & Ancillary Services segment, contributing $10.09 billion.
Dividend Yield: 3.4%
A-Mark Precious Metals maintains a quarterly dividend of US$0.20 per share, with a payout ratio of 35.8%, indicating dividends are well-covered by earnings and cash flows (cash payout ratio at 15.3%). However, its dividend history is volatile, lacking reliability over the past decade despite some growth. The stock trades at a favorable price-to-earnings ratio of 11.4x compared to the US market average of 16.3x but has low profit margins and debt challenges impacting financial stability.
Overview: CNH Industrial N.V. is an equipment and services company involved in the design, production, marketing, sale, and financing of agricultural and construction equipment across various regions including North America, Europe, the Middle East, Africa, South America, and Asia Pacific with a market cap of approximately $14.40 billion.
Operations: CNH Industrial generates revenue from its key segments, with $14.01 billion from Industrial Activities - Agriculture, $3.05 billion from Industrial Activities - Construction, and $2.77 billion from Financial Services.
Dividend Yield: 4.1%
CNH Industrial's dividend of US$0.25 per share, while covered by earnings (payout ratio: 34.1%) and cash flows (cash payout ratio: 75%), is lower than the top US dividend payers. Despite past increases, its dividend history is unstable. Recent executive changes, including a new CFO with extensive finance experience, may impact strategic priorities. The company continues to explore acquisitions to enhance technology offerings while investing in advanced training methods globally to improve workforce skills and product quality.
Overview: Southern Copper Corporation is involved in the mining, exploration, smelting, and refining of copper and other minerals across Peru, Mexico, Argentina, Ecuador, and Chile with a market cap of $67.38 billion.
Operations: Southern Copper Corporation's revenue primarily comes from its Mexican Open-Pit operations at $6.32 billion, followed by Peruvian Operations generating $4.60 billion, and the Mexican Industrial Minera Mexico and Subsidiaries (IMMSA) Unit contributing $704.10 million.
Dividend Yield: 3.3%
Southern Copper's dividend of US$0.70 per share is well-covered by earnings (payout ratio: 48.2%) and cash flows (cash payout ratio: 64.8%), though its history shows volatility over the past decade. Recent financial results highlight strong growth, with annual net income rising to US$3.38 billion from US$2.43 billion, supporting its dividend payments despite a relatively low yield compared to top-tier U.S. dividend payers at 3.26%.
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. Simply Wall St has no position in any stocks mentioned.
