Methanex (MEOH) Declares Hike of Quarterly Dividend by 10%

Methanex Corporation MEOH has received an approval from its board of directors for a 10% hike in its quarterly dividend to 33 cents per share from 30 cents per share. The new dividend will be payable on Mar 31, 2018 to shareholders of record as of Mar 17, 2018.

The company also intends to initiate a new 10% normal course issuer bid in March 2018, which is the earliest timing allowed under Canadian securities legislation.

In the last six months, shares of Methanex have moved up 32%, outperforming the industry’s gain of 11.4%.

In the fourth quarter 2017, the company recorded adjusted (barring one-time items) earnings of $1.70 per share, outpacing the Zacks Consensus Estimate of $1.19. Revenues also increased roughly 47.2% year over year to $861 million.

Methanex generated cash flows from operating activities of $206 million in the fourth quarter compared with $66 million in the prior-year quarter. Cash and cash equivalents were $375.5 million at the end of 2017, a roughly 68% year over year increase.

Methanex noted that methanol prices improved in the fourth quarter as well as into the early 2018 owing to healthy demand and methanol supply challenges. Meanwhile, the company’s Chile IV plant is progressing with its restart process and is expected to be complete by third-quarter 2018.

Zacks Rank & Key Picks

Methanex sports a Zacks Rank #1 (Strong Buy). Some other stocks worth considering from the chemical space are Air Products and Chemicals Inc. APD, Huntsman Corporation HUN and BASF SE BASFY.

Air Products has an expected long-term earnings growth of 14.1% and a Zacks Rank #2 (Buy). Its shares have rallied 17.1% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Huntsman has an expected long-term earnings growth of 8.3% and a Zacks Rank of 2. Its shares have rallied 58.7% in a year.

BASF has an expected long-term earnings growth of 8.9% and a Zacks Rank #2. Its shares have gained 19.1% over a year.

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