CEMEX S.A.B. de C.V. (NYSE:CX), a global leader in the building materials industry, has announced the forthcoming payment of the second installment of its previously declared cash dividend. The payment, amounting to $30 million, is scheduled for shareholders of record as of September 13, 2024.
This announcement follows the resolutions from the Ordinary General Shareholders’ Meeting held on March 22, 2024, and subsequent communication on March 25, 2024. The dividend, which totals $120 million, is to be distributed in four equal installments. The first was paid on June 18, 2024, with the remaining two expected on December 11, 2024, and March 11, 2025.
Shareholders will receive approximately $0.000689 per share, while holders of Cemex Ordinary Participation Certificates (CPO) will receive roughly $0.002067 per CPO. American Depositary Shares (ADS) holders, with each ADS representing 10 CPOs, are set to receive about $0.020670 per ADS.
The final amounts per share, CPO, and ADS for this second installment will be confirmed by Cemex by no later than September 12, 2024. Payment to bearer shares and CPO holders is expected on September 17, 2024, in Mexican Pesos, using the exchange rate determined by the Bank of Mexico on September 12, 2024.
ADS holders are projected to receive their dividend payment on or around September 24, 2024. The cut-off date to acquire CPOs and ADSs eligible for the dividend is September 12, 2024.
The dividend originates from Cemex's Net Tax Profit Account (CUFIN) as of December 31, 2013, and will be disbursed without any tax withholding. This strategic move aligns with Cemex's commitment to shareholder returns and reflects the company's stable financial position.
In other recent news, CEMEX, a global building materials company, reported an increase in EBITDA despite challenging weather conditions and flat net sales, as seen in its second quarter results for 2024.
The company's strategic pricing and investments, particularly in the US and its Urbanization Solutions business, contributed to this growth. Barclays (LON:BARC) upgraded CEMEX's stock from Equalweight to Overweight, citing solid pricing momentum and potential energy cost tailwinds.
JPMorgan (NYSE:JPM) also resumed coverage on CEMEX, assigning an Overweight rating, despite reducing its EBITDA forecasts for fiscal years 2024 and 2025 by 3% and 6% respectively, due to anticipated lower sales. In other developments, CEMEX announced the divestiture of its Dominican Republic operations, valued at approximately $950 million, to Cementos Progreso and its partners, as a strategic move to optimize its global asset portfolio.
InvestingPro Insights
In light of CEMEX's dividend announcement, a closer look at the company's financial metrics and strategic moves can offer shareholders further insights. According to InvestingPro data, CEMEX has a market capitalization of $8.63 billion and is trading at a high earnings multiple, with a P/E ratio of 49.73. However, when adjusted for the last twelve months as of Q2 2024, the P/E ratio becomes more favorable at 15.92. This suggests that the company's earnings might be catching up to its market valuation over time.
The company's revenue growth has been modest, with a 7.77% increase over the last twelve months as of Q2 2024. Additionally, InvestingPro Tips highlight that CEMEX is a prominent player in the Construction Materials industry and that its net income is expected to grow this year. This projected growth could be a driving factor behind the management's decision to aggressively buy back shares, a move that often signals confidence in the company's future performance and a commitment to enhancing shareholder value.
Lastly, it's worth noting that CEMEX does not pay a dividend to shareholders, which aligns with the recent dividend payment announcement. For those interested in a deeper dive into CEMEX's financials and strategic positioning, InvestingPro offers additional tips on their platform, providing a comprehensive analysis for investors seeking to make informed decisions.
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