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Acerinox: Dividend Hike Pushes Yield To 5.4%

Published Sat, 13 Apr 2019 11:25:00 -0400 on Seeking Alpha

It has been almost a year since I discussed Acerinox (OTC:ANIOF) (OTCPK: ANIOY), the Spanish stainless steel producer, here on Seeking Alpha. Despite the tensions on the trade front in 2018, Acerinox was able to generate a record net profit, beating a very successful 2017 on almost every front. This, combined with a 5%+ dividend yield, makes Acerinox an interesting play on the stainless steel market in Europe.

Source: Yahoo Finance
Acerinox does have an OTC listing, but as always, I would strongly recommend to go to the most liquid stock exchange to trade in the company’s shares. Acerinox is part of the IBEX 35 index in Madrid, where it’s trading with ACX as its ticker symbol. Considering the average daily volume in Madrid is approximately 1M shares, there’s absolutely no reason why you wouldn’t want to buy on the most liquid exchange.
As Acerinox is a European company reporting its financial results in euro, I will use that currency as base currency throughout this article.
A record profit, beating 2017
The bar was set very high in 2017 when Acerinox reported a net income of 234M EUR, but the company was able to surprise itself by beating the 2017 record year by approximately 1% as Acerinox reported a net income of 237M EUR in FY 2018.
The total revenue increased by approximately 8% to 5.01B EUR and Acerinox was able to nip cost escalation issues in the bud as, for instance, personnel expenses increased by just 1%. Investors may... Read more