Dow Component Alcoa (AA) To Go Ex-dividend Tomorrow

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

The Dow Jones Industrial Average ( ^DJI) is unchanged at 15,056 as of Wednesday, May 8, 2013, 10:35 a.m. ET. During this time, 152.4 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 601.1 million. The NYSE advances/declines ratio sits at 1,408 issues advancing vs. 1,376 declining with 148 unchanged.
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Thursday, May 9, 2013 is the ex-dividend date for Dow component Alcoa (NYSE: AA). Owners of shares as of market close today will be eligible for a dividend of 3 cents per share. At a price of $8.75 as of 10:35 a.m. ET, the dividend yield is 1.4% compared to the average Dow component yield of 2.6%.

The average volume for Alcoa has been 18.9 million shares per day over the past 30 days. Alcoa has a market cap of $9.29 billion and is part of the basic materials sector and metals & mining industry. Shares are down 0.5% year to date as of Tuesday's close.

Alcoa Inc. engages in the production and management of primary aluminum, fabricated aluminum, and alumina. The company operates in four segments: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions. The company has a P/E ratio of 39.5, above the average metals & mining industry P/E ratio of 37.8.
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TheStreet Ratings rates Alcoa as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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