Southern Copper Raises Quarterly Dividend 19.6% to $1.30

Southern Copper Corporation raised its quarterly cash dividend 19.6% to $1.30 a share from $1.087. SCCO shares trade ex-dividend November 3, 2026, and the payment is due November 19, 2026.

Why the dividend changed

Southern Copper did not provide a separate formula or explicit rationale for the increase. Its latest results, however, show a substantial expansion in the earnings and cash flow available for dividends, even as the company spends more on new mines.

Third-quarter net sales reached $4,696.6 million, up 39.1% from a year earlier, as higher prices across the company’s metals portfolio offset lower copper, molybdenum and silver sales volumes. Net income rose 62.7% to $1,801.8 million, while operating cash flow increased 42.6% to $2,224.3 million. Management attributed the results to higher metal prices, operating execution and cost control. The board paired the cash payment with a stock dividend, making the cash increase only one part of the declared distribution. Southern Copper’s third-quarter results provide the declaration and operating context.

The increase also comes despite weaker mine output. Copper production fell 1.1% sequentially in the third quarter, reflecting lower ore grades in Peru, and was down 2.9% for the first nine months. Higher commodity prices and stronger by-product credits nevertheless supported margins and cash generation.

Capital requirements remain significant. Third-quarter capital investment increased 47.7% to $515.8 million, and nine-month spending reached $1,380.5 million. Tia Maria was 49.6% complete at September 30, 2026, while early work had begun at El Pilar. Southern Copper’s second-quarter results also disclosed a $1.25 billion financing intended for Tia Maria, other capital spending and general corporate purposes.

Dividend track record

Southern Copper’s record is cyclical rather than that of a company making small, uniform annual increases. Annual payments climbed from $1.40 in 2020 to $3.74 in 2023. The total then fell 47.4% to $1.97 in 2024, when three payments were recorded, before rising 49.8% to $2.95 in 2025.

The latest sequence is more consistent. Payments advanced from $0.6567 on the February 11, 2025, ex-dividend date to $0.6607, $0.7626, $0.8658, $0.9705, $0.9783 and $1.087 through August 11, 2026. The new $1.30 rate extends that progression, but the consecutive growth streak is only 1 year because the last annual cut occurred in 2024.

Over the longer period, the dividend recorded 13.7% annual growth on a five-year annualized basis. That result includes substantial variation between years and should not be read as a fixed annual growth policy.

Is the dividend covered?

The dividend consumes 54% of earnings. That indicates current earnings cover the distribution and leave a portion available for mine development, debt service and other corporate needs. Coverage is not unusually wide for a mining company whose earnings remain exposed to copper prices, production volumes, ore grades and project spending.

SmarterDividends rates the dividend C with a safety score of 60. That falls in the borderline (50-65) range. In plain terms, the payment is covered by reported earnings, but its safety is tempered by Southern Copper’s commodity exposure, variable payment history and capital-intensive expansion program.

Yield and valuation

At a share price of $186.01, Southern Copper’s forward yield is 2.37%, compared with a 1.86% median for the Basic Materials sector. The stated annual dividend is $4.40 per share, equal to $440.00 in annual income for 100 shares.

The shares have recorded a 41.4% gain over one year. SmarterDividends estimates fair value at $58.59 and classifies the stock as overvalued, with 68% downside to that estimate. The yield therefore sits above the sector median even though the valuation measure is well above fair value.

What to watch

The immediate dates are November 3, 2026, when the shares trade ex-dividend, and November 19, 2026, when the payment is scheduled. Investors also have the company’s combined cash-and-stock distribution structure to monitor because stock dividends affect per-share comparisons over time.

The next operating update will show whether record cash generation continues alongside heavy project spending. Specific items include copper output and ore grades in Peru, cost control, metal prices and progress at Tia Maria and El Pilar. Management said Tia Maria is expected to begin operations in the first half of 2028, while El Pilar construction is scheduled to start in the first quarter of 2027. Those projects are central to the company’s expansion program and its future calls on cash.