In a recent filing with the Securities and Exchange Commission, CEMEX SAB de CV (NYSE:CX), a global leader in the building materials industry, announced it would be proceeding with the distribution of a $30 million cash dividend to its shareholders. This payment represents the second installment of a dividend initially declared at the company's Ordinary General Shareholders' Meeting on March 22, 2024.
The dividend, amounting to $0.013496 Mexican pesos per share (equivalent to $0.000689 per share in USD), will be delivered against coupon number 152 attached to the share certificates of the company's paid-up capital stock. Holders of CEMEX Ordinary Participation Certificates (CPOs) will receive $0.040488 Mexican pesos per CPO (equivalent to $0.002067 per CPO in USD), and holders of CEMEX American Depositary Shares (ADSs) will receive $0.020670 per ADS.
The payment to shareholders holding bearer shares and CPOs is scheduled for Monday, September 17, 2024, in Mexican Pesos. Those holding ADSs can expect to receive their dividend on or around Monday, September 24, 2024. The exchange rate applied to determine the dividend in Mexican Pesos was $19.5887 per USD, as set by Banco de México on today's date.
The dividend originates from CEMEX's Net Tax Profit Account (CUFIN) as of December 31, 2013. Consequently, the company has stated that no tax withholding will be required for this dividend payment.
This financial event for CEMEX follows the company's adherence to its shareholder remuneration policy, as outlined in previous corporate resolutions. The information disclosed is based on the official SEC filing by CEMEX SAB de CV.
In other recent news, Cemex S.A.B. de C.V. announced a series of significant developments. The company reported the sale of its approximate 34.8% interest in technology consultancy firm Neoris N.V. for about $209 million. This divestment is part of Cemex's broader business objectives and financial plans.
In addition, Cemex revealed the forthcoming payment of the second installment of its previously declared cash dividend, amounting to $30 million. This follows a resolution from the Ordinary General Shareholders’ Meeting earlier this year.
The company also reported an increase in EBITDA in its second quarter results for 2024, despite challenging weather conditions and flat net sales. This growth is attributed to the company's strategic pricing and investments, particularly in the US and its Urbanization Solutions business.
Analyst firms JPMorgan (NYSE:JPM) and Barclays (LON:BARC) have both upgraded CEMEX's stock to Overweight, citing promising factors such as solid pricing momentum and potential energy cost tailwinds. Furthermore, CEMEX announced the divestiture of its Dominican Republic operations, valued at approximately $950 million, to Cementos Progreso and its partners.
This strategic move is part of CEMEX's broader objective to optimize its global asset portfolio and improve profitability.
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