Ternium SA, known by the ticker symbol TX, is a large-cap steel company, operating in the materials business sector. This is my first report on Ternium for this Viital portfolio or any of my previous six dividend dog portfolios.

Ternium SA 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 two segments: Steel and 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 vast majority of its revenue comes from the steel segment. Its geographical segments are Mexico, the Southern region, and Brazil & Other markets.

The company also provides medical and social; scrap; and engineering and other services, as well as operates as a distribution company. 

It serves various companies and small businesses in the construction, automotive, home appliances, agro, packaging, transport, and energy industries. 

The company 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 any dividend equity or fund such as Ternium SA:

(1) Price

(2) Dividends

(3) Returns

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

TX Price

Ternium's price per share was $49.49 as of yesterday's market close. One year ago its price was $38.44. Therefore, Ternium SA's share price rose $11.05 or about 29% in the past year. 

If Ternium's stock trades in the range of $32.00 to $58.00 this next year, its recent $49.49 share price might rise by $5.51 to reach $55.00 by April 14, 2023. My $5.51 upside estimate is $0.38 under the median of thirteen analysts annual target prices for brokerage houses tracking TX. 

TX Dividends 

Ternium's most recently declared semi-annual dividend of $1.80 is  payable May 16th to shareholders on record as of May 5th.  Assuming an Annual payout of $2.60 holds true in the coming year, the payout per share yields 5.25% at yesterday's $49.49 closing price. 

Ternium SA has paid its first variable semi-annual payout in 2021. Previously is dividend mode was annual since 2015. since October, 2013. That stretch marks 7 years come May. 

TX Returns

Adding the $2.60 Ternium SA annual dividend to the estimated one-year price upside of $5.51 shows a $8.11 potential gross gain, per share, to be reduced by any costs to trade Ternium shares.  

At yesterday's $49.49 price per share, a little UNDER $1000 would buy 20 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.50 per share.

Subtract that maybe $0.50 brokerage cost from my estimated $8.11 gross gain estimate per share results in a net gain of $7.61 X 20 shares = $152.20 for a15.2% net gain on a $989.80 investment.

So it is that Ternium SA (TX): shows a possible 15.2% net gain including a 5.25% forward looking dividend yield. 

Over the next year at this time our $1000 investment in Ternium SA might generate $52.50 cash dividends alone. Note that a single share of TX stock bought at yesterday's price of $49.49 is $3.01 less than the anticipated dividend income from our $1000.00 invested. So, by my dogcatcher ideal, this may be the time to buy TX shares. The estimated next-year dividend from $1K invested is currently  $3.01 greater than yesterday's single share price. Consider yourself alerted. It's a sign. Go for the dividend! 

All of the estimates above are speculation based on the past history of Ternium SA. Only time and money invested in this stock will determine its market value.