Mercer International Inc. (NASDAQ:MERC) Announces $0.07 Quarterly Dividend

Mercer International Inc. (NASDAQ:MERC) (TSE:MRI.U) declared a quarterly dividend on Tuesday, February 23rd, Wall Street Journal reports. Stockholders of record on Wednesday, March 31st will be paid a dividend of 0.065 per share by the basic materials company on Wednesday, April 7th. This represents a $0.26 annualized dividend and a dividend yield of 1.93%. The ex-dividend date is Tuesday, March 30th.

Mercer International has decreased its dividend by 29.3% over the last three years and has increased its dividend annually for the last 1 consecutive years. Mercer International has a payout ratio of 74.3% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Mercer International to earn $0.44 per share next year, which means the company should continue to be able to cover its $0.26 annual dividend with an expected future payout ratio of 59.1%.

Shares of MERC stock traded down $0.23 during mid-day trading on Tuesday, reaching $13.46. 165,414 shares of the company’s stock traded hands, compared to its average volume of 270,815. The company has a debt-to-equity ratio of 2.11, a quick ratio of 2.81 and a current ratio of 4.16. The firm has a market capitalization of $886.58 million, a PE ratio of -11.60 and a beta of 1.93. Mercer International has a 12 month low of $5.77 and a 12 month high of $14.00. The firm has a 50 day moving average price of $12.09 and a two-hundred day moving average price of $8.95.

Mercer International (NASDAQ:MERC) (TSE:MRI.U) last released its earnings results on Tuesday, February 16th. The basic materials company reported ($0.20) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.05 by ($0.25). Mercer International had a negative net margin of 5.68% and a negative return on equity of 14.04%. As a group, equities analysts expect that Mercer International will post -0.09 earnings per share for the current fiscal year.

MERC has been the topic of a number of analyst reports. Zacks Investment Research cut Mercer International from a “buy” rating to a “hold” rating in a research report on Thursday, February 18th. Credit Suisse Group lifted their price target on shares of Mercer International from $11.50 to $16.00 and gave the company an “outperform” rating in a report on Tuesday, February 9th. Royal Bank of Canada increased their price objective on shares of Mercer International from $11.00 to $15.00 and gave the stock a “sector perform” rating in a research note on Friday. Raymond James raised their price objective on shares of Mercer International from $11.00 to $12.50 and gave the company an “outperform” rating in a research report on Wednesday, January 13th. Finally, TD Securities upped their target price on shares of Mercer International from $15.00 to $16.00 and gave the stock a “buy” rating in a report on Thursday, February 18th. Two research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. Mercer International presently has a consensus rating of “Buy” and an average price target of $13.75.

About Mercer International

Mercer International Inc, together with its subsidiaries, manufactures and sells northern bleached softwood kraft (NBSK) pulp in Europe, the United States, Asia, and internationally. The company operates in two segments, Pulp and Wood Products. It also generates and sells green energy produced from biomass cogeneration power plant to third party utilities.

Further Reading: Special Dividends

Dividend History for Mercer International (NASDAQ:MERC)

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