Is Southern Copper Corporation (NYSE:SCCO) Potentially Underrated?

In this article:

Southern Copper Corporation (NYSE:SCCO) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of SCCO, it is a highly-regarded dividend payer with a a great history of delivering benchmark-beating performance. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, read the full report on Southern Copper here.

Solid track record average dividend payer

Over the past few years, SCCO has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 23%, which is an notable feat for the company.

NYSE:SCCO Income Statement, March 4th 2019
NYSE:SCCO Income Statement, March 4th 2019

SCCO’s high dividend payments make it one of the best dividend stocks on the market, and its profitability ensures that dividends are well-covered by its net income.

NYSE:SCCO Historical Dividend Yield, March 4th 2019
NYSE:SCCO Historical Dividend Yield, March 4th 2019

Next Steps:

For Southern Copper, I’ve compiled three pertinent aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for SCCO’s future growth? Take a look at our free research report of analyst consensus for SCCO’s outlook.

  2. Financial Health: Are SCCO’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of SCCO? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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