Albemarle to pay 3Q17 dividend
Albemarle (ALB) has announced that it will pay its 3Q17 dividend on October 2, 2017. It has made no changes to its quarterly dividend. ALB will pay a dividend of $0.32 per share on its outstanding shares. Investors who hold the shares on or before September 15 will be eligible for the dividend. ALB’s peers FMC (FMC) and W.R. Grace (GRA) will pay a quarterly dividend of $0.17 and $0.21 per share, respectively. Sociedad Química y Minera de Chile (SQM) paid an annual dividend of $0.39 per share for fiscal 2017.
ALB’s 3Q17 dividend of $0.32 per share represents a dividend growth of 4.9% over 3Q16. Assuming ALB will pay the same dividend for 4Q17, its dividend for fiscal 2017 would be $1.28 per share. From 2012 to 2017, ALB’s dividend has grown at a CAGR (compound annual growth rate) of 9.9%.
ALB’s free cash flow
Generating positive cash flow is very important for any company. Using free cash flows, companies can finance activities such as dividend payments, share buybacks, debt repayments, and more. Let’s see how ALB’s free cash flow could support its dividend growth. We’ll also convert ALB’s free cash flow into free cash flow per share.
At the end of 2Q17, ALB had a negative free cash flow of $54.5 million, primarily due to the payment of taxes related to the sale of the Chemetall surface treatment business. However, from 2012 to 2016, ALB’s free cash flow per share has risen at a CAGR of 19.7%, which was strong enough to support its dividend growth.
Investors can indirectly hold ALB by investing in the Global X Lithium ETF (LIT), which has invested 6.4% of its portfolio in ALB as of August 29, 2017.
In the next part, we’ll look at ALB’s dividend yield and dividend payouts.