Materion Corporation Announces Founding Membership In New American Lightweight Materials Manufacturing Innovation Institute (ALMMII)
Materion Corporation (NYSE: MTRN) announced today that it is a founding
member of the American Lightweight Materials Manufacturing Innovation
Institute (ALMMII), the newest center in the President’s National
Materion Corporation (NYSE: MTRN) announced today that it is a founding member of the American Lightweight Materials Manufacturing Innovation Institute (ALMMII), the newest center in the President’s National Network of Manufacturing Innovation. Introduced recently at a White House event, ALMMII will develop advanced lightweight metal manufacturing technology for transfer to the industrial sector, especially automotive, aerospace, energy and defense. ALMMII is structured as a public-private partnership led by the Columbus, Ohio-based nonprofit EWI and The Ohio State University, along with the University of Michigan. The Institute is being funded by $70 million from the Department of Defense matched by $78 million from the consortium partners. The private sector funding includes in-kind contributions of research and technical services. The Institute will have its headquarters in southeast Michigan. As a founding member, Materion joins some 60 manufacturing companies, universities, research institutions and industry associations focused on the total value chain for lightweight materials – development, qualification, optimized use, and commercialization of affordable lightweight structures for defense and commercial requirements. “We are proud to contribute our expertise in lightweight materials to the consortium,” said Richard J. Hipple, Chairman, President and CEO of Materion. “With our copper and nickel-based alloys, metal matrix composites, clad metal systems, and bulk metallic glass alloys, we believe we bring a unique portfolio and skill set to the Institute. We look forward to working with our new ALMMII partners in launching this initiative in support of lightweight metals technologies.” Lawrence Brown, executive director of ALMMII, said, “We are pleased to have Materion as a launch partner on our team. Materion brings a wealth of experience in the design and production of high-performance lightweight alloys and specialty materials that will complement the strengths of other team members. “The goal of the Institute is to expand the market for and create new consumers of products and systems that utilize lightweight, high-performing materials by removing barriers to their manufacture,” said Brown. “I am confident Materion will be an important contributor as we pursue this goal.”
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.