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Ternium SA (TX) is a flat steel producer operating in Mexico, Brazil, Argentina, Colombia, the southern United States, and Central America.

It produces finished and semi-finished steel products and iron ore, which are sold either directly to steel manufacturers and steel processors or end-users.

The company operates in three segments: (1) Steel, (2) Usiminas, and (3) Mining.

In its steel segment, the company produces slabs, billets & round bars, hot-rolled coils & sheets, bars & stirrups, wire rods, steel pipes, and other products.

The Mining segment sells iron ore as concentrates (fines) and pellets.

The Usiminas segment produces iron ore extraction, steel transformation, production of capital goods and logistics.

The vast majority of its revenue comes from the steel segment and geographically from Mexico.

Ternium S.A. was founded in 1961 and is based in Luxembourg City, Luxembourg.

Ternium S.A. is a subsidiary of Techint Holdings S.à r.l.

Three key data points gauge

Ternium S.A. or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

TX Price

Share price fell 31% in the past year from $42.47 to $29.25, as of Thursday’s market close.

In the past 3 years, the company’s share price has ranged from $49.66 to $26.75. Its all-time high price of $56.86 was reached on August 11, 2021.

If shares trade in the range of $26 to $46 this next year, the recent $29.24 share price might grow to $37.24 Of course, TX shares could also drop about the same $8.00 estimated amount, or more.

My $8.00 price upside estimate is based on the average price gain for Ternium over the past four years as of March 20th.

TX Dividend

Ternium has paid variable dividends since June 2010, switching from annual to semi-annual mode in 2021. The company’s most recent SA dividend of $0.90 was declared on November 5th for shareholders of record prior to November 18th and the dividend was paid on November 26th. A forward-looking annual dividend of $1.80 yields 6.19% per Thursday’s closing price.

TX Returns

Putting it all together, a $9.80 estimated annual gross gain per share shows up by adding Ternium’s annual $1.80 dividend to the annual average $8.00 price upside over the past four years, totaling that $9.80 estimated gross gain.

A little under $1000 buys 34 shares at Thursday’s $29.24 share price.

A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.29 per share out of the $9.80 gross gain to give us a net gain of 9.51 X 34 shares = $323.34 for about a 32% estimated net gain on the year.

Furthermore, the $61.60 annual estimated dividend income from $1k invested in TX is over 2.1 times greater than the $29.14 single-share price. By these numbers, TX may be an ideal materials dividend dog.

Therefore, you may want to pounce on Ternium SA.

64-year-old variable semi-annual dividend-paying steel and iron ore supply company with a 15-year dividend record.

The exact track of Ternium SA's future price and dividend will entirely be determined by market action and company finances.

Remember the best measure of stock value is through direct ownership of shares.

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