Albemarle increases dividend
On February 23, 2018, Albemarle (ALB) announced its dividend for 1Q18. ALB said that it would pay a quarterly dividend of $0.335 per share, which would be $1.34 per year on an annualized basis. This represents an increase of ~4.7% on a year-over-year basis.
Investors holding Albemarle stock on March 15, 2018, will be eligible for this dividend. ALB is expected to pay the dividend on April 2, 2018. ALB has increased its dividend for 24 consecutive years.
On February 23, 2018, Albemarle’s (ALB) dividend yield was 1.1%. Among its peers, FMC (FMC), W.R. Grace (GRA), and Sociedad Química y Minera de Chile S.A. (SQM) had dividend yields of 0.80%, ~1.4%, and ~1.6% respectively. ALB’s dividend yield is lower than the yield generated from the one-year Treasury bond.
Albemarle’s stock price update
The news of a dividend increase had a positive impact on Albemarle stock. ALB gained 5.8% and closed at $118.75 for the week ended February 23, 2018. Despite big gains during the week, ALB traded ~8.0% below its 100-day moving average price of $129.03, indicating weakness in the stock. On a year-to-date basis, ALB stock has fallen 7.2%.
ALB’s 4Q17 earnings were scheduled to be announced on February 27, 2018. Analysts projected a target price of $144.10, which is 21.4% higher than its closing price of $118.75 on February 23.
ALB has a relative strength index (or RSI) of 57, indicating that the stock is neither overbought nor oversold. Investors can indirectly hold ALB by investing in the Global X Lithium ETF (LIT), which invested ~6.2% of its portfolio in Albemarle on February 23, 2018. The fund gained 2.7% for the week.