- In late July 2025, Southern Copper Corporation announced a quarterly cash dividend increase to US$0.80 per share, following strong second-quarter results with net income of US$973.4 million and robust production across copper, molybdenum, zinc, and silver.
- This dividend hike signals management’s confidence in the company’s earnings power, especially following a period of variable dividend history and increased output of key metals.
- We'll examine how this dividend increase, supported by higher net income and production growth, impacts Southern Copper's investment narrative going forward.
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Southern Copper Investment Narrative Recap
To be a Southern Copper shareholder, you need to believe in the long-term demand for copper and the company's ability to capitalize on expansion projects and operational efficiencies. The recent dividend increase underscores financial health, but it does not materially shift the major short-term catalyst, which remains the execution and ramp-up of new projects, or the main risk, which continues to be trade and tariff uncertainty that could impact copper sales and profitability.
The most relevant recent announcement is the Board’s authorization of a US$0.80 per share quarterly dividend, which stands out thanks to strong second-quarter net income and increased output in key by-products like zinc and silver. While this reinforces confidence in earnings sustainability, investors’ attention is still focused on how Southern Copper will manage external risk factors, particularly tariffs and demand volatility.
However, investors should also be alert to the potential impact of a significant global trade disruption, as…
Read the full narrative on Southern Copper (it's free!)
Southern Copper's narrative projects $12.6 billion revenue and $4.2 billion earnings by 2028. This requires 1.7% yearly revenue growth and a $0.6 billion earnings increase from $3.6 billion today.
Uncover how Southern Copper's forecasts yield a $95.71 fair value, a 3% upside to its current price.
Exploring Other Perspectives
Simply Wall St Community members submitted five separate fair value estimates for Southern Copper stock, ranging widely from US$45 to US$100 per share. With tariff risks still looming over U.S. copper imports, these broad differences highlight just how much expectations about external pressures drive the company’s performance outlook.
Explore 5 other fair value estimates on Southern Copper - why the stock might be worth less than half the current price!
Build Your Own Southern Copper Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Southern Copper research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
- Our free Southern Copper research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Southern Copper's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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