SQM Raises Semiannual Dividend 39.3% to $1.435

Sociedad Química y Minera de Chile raised its semiannual dividend to $1.435 per share from $1.03, an increase of 39.3%. SQM shares traded ex-dividend on September 8, 2026.

Why the dividend changed

SQM’s board designated the distribution as an interim dividend charged against 2026 net income. The company’s declaration did not provide a more detailed rationale, but the decision followed a sharp improvement in earnings and operating performance during the first half.

SQM reported first-half net income of US$1.02 billion, compared with US$225.9 million a year earlier. Second-quarter net income reached US$660.0 million as revenue rose to US$2.47 billion. Lithium was the main driver. Lithium and derivatives produced 78% of first-half gross profit, while record quarterly sales volumes and higher realized prices lifted the segment’s results. Management said stronger-than-expected demand led it to increase its global lithium-demand expectation for 2026. SQM’s second-quarter release provides the operating and earnings details.

The increase was approved despite a substantial investment program. SQM expects about US$3 billion of capital expenditure from 2026 through 2028, including spending on its Chilean lithium operations, iodine and plant nutrition assets, and international lithium business. The company and Wesfarmers also approved the expansion of the Mt. Holland lithium project, where construction of a second concentrator is expected to begin in the second half of 2027. The expansion is intended to double spodumene concentrate production and lower unit operating costs. The stronger dividend therefore sits alongside, rather than in place of, SQM’s expansion commitments.

Dividend track record

SQM’s recent payments show substantial variability. The September 8, 2026, ex-dividend payment of $1.435 followed $1.03 on May 8, 2026. The prior listed payment was $0.213 on May 9, 2024. That sequence is consistent with a commodity producer whose distributions can move materially with earnings rather than a company targeting small, regular annual increases.

Annual totals reinforce that pattern. Payments rose from $0.81 in 2020 to $1.97 in 2021 and $7.81 in 2022. The total then fell 34.4% to $5.12 in 2023 and fell 95.8% to $0.21 in 2024, when the record contains one payment. The current annual dividend is $2.43 per share.

SQM has 0 consecutive years of dividend growth, and its last annual cut was in 2021. The latest 39.3% increase restores income from the previous payment but does not establish a growth streak. Investors evaluating the record need to distinguish a higher individual distribution from consistent year-over-year dividend growth.

Is the dividend covered?

The dividend represents 21% of earnings. That payout ratio indicates that most reported profit is being retained rather than distributed, providing earnings coverage for the current payment while SQM funds its capital program.

SmarterDividends rates the dividend C, with a safety score of 46. The grade denotes borderline safety: current earnings coverage is favorable, but SQM’s uneven payment history and exposure to lithium and iodine market conditions keep the assessment below the stronger safety categories. The grade is consistent with a dividend that is covered on earnings but has not demonstrated stability through the commodity cycle.

Yield and valuation

At a share price of $67.82, SQM’s forward yield is 3.51%. That compares with a 1.88% median forward yield for the Basic Materials sector. The stock has gained 38.2% over one year and has a market value of $19.4 billion.

SmarterDividends estimates fair value at $71.35 and classifies the shares as fairly valued. That estimate represents 5% upside to fair value. The valuation verdict indicates that the current price is close to the estimated value rather than materially above or below it.

What to watch

The next operating update is scheduled for November 17, 2026, when SQM plans to publish third-quarter results, followed by its conference call on November 18, 2026. SQM’s investor calendar lists the reporting date. Relevant disclosures include lithium sales volumes and realized prices, progress on the Salar Futuro permitting process, and any revision to the company’s capital-spending plans.

Investors can also monitor execution at Mt. Holland and whether lithium remains the dominant contributor to gross profit. For the dividend specifically, the next board declaration will show whether the $1.435 payment marked the start of a more sustained recovery or another variable interim distribution. The company’s lack of a current growth streak makes that declaration more informative than the latest increase alone.