Savvy consumers are being driven to replace current household light bulbs with light-emitting diodes (LED) to reduce energy consumption and costs. This shift away from traditional lighting has caused the LED market to double between 2006 and 2011 with growth projected to continue. To support this dynamic global industry, Materion Advanced Chemicals has significantly enhanced its production of critical phosphor materials critical to all types of LED lighting. Materion Boosts Production The LED industry is always seeking ways to improve performance and lower costs. Materion produces consistent, high-quality inorganic compounds used in the manufacture of LED phosphors that deliver more lumens per dollar. “Customers come to us because of our chemical expertise and ability to synthesize and handle these exceptional materials in high-volume applications,” says E. J. Strother, Vice President and Strategic Business Unit Leader at Materion Advanced Chemicals. To meet the accelerating demand for LED phosphor materials, Materion has:
Expanded production space, designed as a “Production Work Cell,” for leaner manufacturing
Added new dedicated processing equipment to increase handling capacity
Improved process and engineering controls for greater operational efficiency
LED Technology – The Future The general lighting industry is engaged in new and evolving LED technologies supported actively by Materion. Specific LED lighting qualities and colors are achieved through various compounds. When existing compounds won’t do, Materion develops specially formulated compositions to achieve the necessary characteristics. Quantities can also be easily scaled to suit small or large production requirements. With today’s focus on energy saving, the demand for LED lighting is expected to climb. Materion’s latest expansion of its phosphor materials capabilities demonstrates the Company’s commitment to the industry. Strother concluded, “Materion is dedicated to bringing more efficient and cost-effective LED lighting to the world.”
Looking at the universe of stocks we cover at Dividend Channel, on 2/17/15, Materion Corp will trade ex-dividend, for its quarterly dividend of $0.085, payable on 3/3/15. As a percentage of MTRN's recent stock price of $37.16, this dividend works out to approximately 0.23%.
Shareholders of Materion Corp looking to boost their income beyond the stock's 0.9% annualized dividend yield can sell the June 2015 covered call at the $40 strike and collect the premium based on the $1.40 bid, which annualizes to an additional 8.4% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 9.3% annualized rate in the scenario where the stock is not called away. Any upside above $40 would be lost if the stock rises there and is called away, but MTRN shares would have to climb 11.2% from current levels for that to occur, meaning that in the scenario where the stock is called, the shareholder has earned a 15.1% return from this trading level, in addition to any dividends collected before the stock was called.
In trading on Friday, shares of Materion Corp crossed below their 200 day moving average of $34.17, changing hands as low as $34.10 per share. Materion Corp shares are currently trading off about 1.6% on the day.