Image Source: Pixabay

Sociedad Quimica y Minera de Chile (SQM) is a Chilean commodities producer with significant operations in lithium (primarily used in batteries for electric vehicles and energy storage systems), specialty and standard potassium fertilizers, iodine (primarily used in X-ray contrast media), and solar salts.

The company extracts these materials through its high-quality salt brine deposits and caliche ore. SQM is also developing a hard rock lithium project in Australia and is growing its lithium refining assets in China.

The company operates in Chile, Latin America and the Caribbean, Europe, North America, Asia, and internationally.

The company was founded in 1960 and is headquartered in Santiago, Chile.

Three key data points gauge

Sociedad Química Y Minera De Chile SA or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

SQM Price

Over the past year, SQM’s share price fell 40% from $80.96 to $48.50 as of Wednesday’s market close.

If SQM shares trade in the range of $40.00 to $80.00 this next year, its recent $48.50 share price might rise to $58.50 by next year. Of course, SQM’s price could drop about the same $10.00 estimated amount, or more.

My annual upside estimate of $10.00 however, is in $10.05 below the median of one year price targets estimated by 18 analysts tracking SQM for brokers.

SQM Dividend

Sociedad Química Y Minera De Chile SA  has paid variable dividends annually since May 1994 going to semi-annual payouts in May 2004 and paying quarterly variable dividends since May, 2018. SQM’s most recent Q dividend of $0.50 was declared November 17 to shareholders of record December 6th and payout was made January 5th.

A forward looking $5.00 annual dividend yields 10.31% at Wednesday’s $48.50 share price.

SQM Returns

To put it all together, add Sociedad Química Y Minera De Chile SA estimated annual dividend of $5.00 to the estimated price upside of $10.00 to find a $15.00 estimated gross gain for the coming year.

At Wednesday’s $48.50 share price, a little over $1000 would buy 21 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.48 per share.

Subtracting that likely $0.48 brokerage cost from the $15.00 gross gain produces a net gain of $14.52 X 21 shares = $302.82 for a 30% estimated net gain on the year.

You might choose to pounce on Sociedad Química Y Minera De Chile It is a 64 year-old dividend paying Chllean Mining Company.  Furthermore, the estimated $103.10 annual dividend income from $1k invested is 2.125 times greater than SQM’s recent $48.50 single share price.

The exact track of Sociedad Química Y Minera De Chile SA ’s ongoing future price and dividend will be determined by market action.

More By This Author:

Current Analysis: Gerdau SA
Current Analysis: Fortescue Ltd
Current Analysis: Cementos Pacasmayo (CPAC)