The company may benefit the most this year
Arconic Inc. (NYSE:ARNC) declared a $0.06 per share quarterly dividend. This comes with a forward yield of 1.14%. The dividend is payable by February 25, 2017 to the holders of the record of the common stock of the company, at the close of the business on February 3, 2017.
Arconic Inc. and Alcoa Corporation split into two companies in late 2016. However, Arconic has proved to be a long term investment stock for many.
First it should be noted that the company started with a huge debt of $8.1 billion, which now has been reduced by $750 million. Although it has a huge debt, the company had a very strong capital position to start with. It finished the year with $1.8 billion in cash by the end of 2016.
This is why the stock was down for quite some time in 2016; it adopted a huge debt at the beginning of the year, and it is believed that in the long run it is going to benefit the most. This is mainly because of the cyclical nature of the business that Arconic deals with.
Arconic is mainly dealing with the aerospace and automotive. These two industries will benefit Arconic the most in the New Year. With respect to the North American auto industry, it reached its all-time high sales in 2016. As far as the aerospace sector is concerned, the orders are strong and expected to increase in the year 2017. This implies that in the long term, investors are going to benefit immensely if they invest in this company.
The stock traded at $21.13, climbing a massive 0.60% at Friday’s close and the stock traded in the 52-week range lying between $16.75–22.64. This suggests that the Friday’s close was near its 52-week high, which does imply positive movements for the stock.